ISLAMABAD: Pakistan’s exports to the Middle East fell over 2 per cent year-on-year to $3.093 billion in FY26, reflecting the impact of the ongoing conflict on the country’s trade with the region.
Exports to Saudi Arabia, Qatar, Bahrain and Jordan declined in FY26, while shipments to Kuwait recorded an uptick. Exports remained stagnant to the United Arab Emirates (UAE), Pakistan’s biggest regional export market, according to data compiled by the State Bank of Pakistan.
In contrast, imports also contracted 4pc to $16.413bn in FY26 from $17.097bn in the preceding year, driven by Bahrain, Qatar and Kuwait. However, imports from the UAE, Saudi Arabia and Jordan grew.
June emerged as the fourth month after March contraction, which suggests that Pakistan’s import flows are highly sensitive to geopolitical developments, particularly in energy corridors.
Pakistan was heavily reliant on energy imports, particularly from the UAE and Saudi Arabia, with a combined share of 90pc. Other countries, including Qatar, Kuwait, Oman and Bahrain, remain secondary contributors despite their export capacity.
Pakistan’s trade deficit with the Middle East narrowed by 4.48 per cent to $13.32bn in FY26 from $13.94bn in the preceding year. In FY25, the deficit with the region widened 7.37pc to $13.974bn from $13.014bn in FY24.
Exports to Saudi Arabia fell 3pc to $682.56m in FY26 from $706.04m over the same period last year.
Published in Dawn, July 28th, 2026