Pakistan’s trade deficit with the Middle East rose to $9.35 billion during the first eight months of the 2024-25 fiscal year. This figure represents a 9.75% increase from $8.52 billion in the same period last year. The primary factor behind this increase is the spike in oil imports. As a result, the trade balance has been significantly impacted.
Meanwhile, exports to Gulf countries increased slightly by 3.56%, reaching $2.095 billion in July-February 2025. In contrast, imports from the Middle East rose by 8.56%, totaling $11.44 billion during the same period. Last fiscal year, imports had decreased by 13.53%, but this year’s rise signals renewed demand for petroleum products.
Notably, exports to Saudi Arabia and the UAE showed growth. Exports to Saudi Arabia rose by 10.59%, reaching $489.44 million. Similarly, exports to the UAE increased by 5.84%, amounting to $1.414 billion. However, exports to Bahrain and Kuwait declined during the same period, showcasing mixed results across different Gulf states.
Policymakers express concern over the growing trade deficit, particularly due to rising petroleum consumption. Crude oil imports surged by 20.29% in the first eight months of FY25. In the previous fiscal year, the trade imbalance had narrowed, largely due to reduced oil imports and lower domestic consumption.