Pakistan Trade Deficit with Gulf States Widens to $3.45 Billion

News Desk
ISLAMABAD: Pakistan’s trade deficit with Gulf partner countries widened by 2.61 per cent to $3.450 billion in the first two months of the fiscal year 2026-27, rising from $3.362 billion in the corresponding period last year as surging imports significantly outpaced export growth.
According to comprehensive data compiled by the State Bank of Pakistan, export proceeds displayed moderate growth driven primarily by notable gains in Jordan, the United Arab Emirates, and Oman, which recorded increases of 34.7pc, 13.6pc, and 5.9pc respectively.
However, exports experienced sharp declines in key markets including Saudi Arabia, Qatar, Kuwait, and Bahrain, largely reflecting prevailing regional instabilities and shifting trade dynamics across the Middle East.
In stark contrast, import expenditures from Qatar, Kuwait, Bahrain, and Saudi Arabia witnessed dramatic surges of 41.9pc, 27.6pc, 39.4pc, and 14.7pc respectively.
Analysts note that ongoing geopolitical tensions and the lingering fallout from Middle East conflicts have severely disrupted Pakistan’s conventional trade corridors since early last year, heightening external economic vulnerabilities and reinforcing the nation’s heavy reliance on imported Gulf energy and raw materials.
To mitigate these widening imbalances and stabilize the external account, economic experts emphasize the urgent need for domestic export diversification and strategic energy conservation measures.
Federal authorities are expected to review bilateral trade frameworks with key Gulf Cooperation Council capitals in upcoming ministerial consultations to address these systemic deficits.