Pakistan’s exports to nine regional countries reached $357 million in July, showing a 5.10% increase from the previous year. The rise was driven by higher shipments to China, Bangladesh, and Sri Lanka. This data comes from the State Bank of Pakistan and reflects early trends for the current fiscal year. Despite the overall growth, exports to key neighbors like Afghanistan and India fell significantly.
China remained Pakistan’s top regional trading partner, taking in 60% of total regional exports. Exports to China surged by 24.7% in July, rising to $199.65 million. However, on a yearly basis, exports to China dropped 8.6%, totaling $2.476 billion in FY25, down from $2.709 billion in FY24. Imports from China also grew by nearly 15% in July and over 20% year-to-date.
In contrast, exports to Afghanistan dropped sharply by 38.23% to $54.39 million in July. This decline marks a significant shift from past years when Afghanistan was a key trading partner. Experts link this fall to changing trade routes and limited official records of border trade. Informal trade and security issues may also be factors behind the decline.
Exports to Iran were recorded at zero through official channels in July. Trade with Iran mostly happens through informal methods such as barter in border regions. Similarly, exports to India remained extremely low, totaling just $1.15 million. Most trade with India now takes place via third-party countries like the UAE and Singapore, raising transaction costs.
Overall, while trade with some regional partners is improving, long-standing barriers with others continue to hurt Pakistan’s export potential. Strengthening formal trade ties and improving cross-border logistics could help Pakistan tap into new growth opportunities. As fiscal year 2026 unfolds, regional trade dynamics will be critical for economic stability.