ISLAMABAD: Pakistan’s trade deficit with the Middle East grew by 10.87% to $4.781 billion during the first four months of FY2024-25, up from $4.312 billion in the same period last year, primarily driven by increased petroleum imports.
Thank you for reading this post, don't forget to subscribe!State Bank of Pakistan data highlights the mounting trade imbalance as a key concern for policymakers. Petroleum imports surged due to higher consumption, with crude oil imports alone growing by over 16% during the period. This marks a reversal from FY2023-24, when the trade deficit with the Middle East narrowed by 20.47% to $13.014 billion amid reduced petroleum imports.
Exports Show Growth Despite Deficit
Pakistan’s exports to the Middle East climbed 12.64% to $1.082 billion between July and October 2024, up from $705.27 million a year earlier. In FY2023-24, exports to the region grew by 35.23% to $3.155 billion. The increase in demand was particularly notable in the UAE, Saudi Arabia, and Qatar.
Saudi Arabia: Exports rose 14.23% to $245.57 million, while imports increased 18.03% to $1.332 billion.
UAE: Exports surged 17.94% to $737.55 million, with top exports including rice, cotton garments, guavas, and mangoes. Imports from the UAE grew 23.46% to $2.652 billion.
Qatar: Exports fell by 21.57% to $43.06 million, but imports rose 14.43% to $1.173 billion.
Declining Exports to Smaller Markets
Exports to Bahrain and Kuwait saw declines of 19.44% and 9.65%, respectively. However, imports from these nations surged, with Bahrain’s imports jumping 155.39% and Kuwait’s by 41.67%.
The widening trade gap underscores the need for policy measures to address the rising dependency on energy imports and to diversify export markets.
Story by Mubarak Zeb Khan
