ISLAMABAD: Pakistan’s trade deficit with the Middle East expanded by 7.88 per cent during the first five months of the ongoing fiscal year 2025-26, largely due to higher imports mainly petroleum products and a notable decline in exports to the region, official data showed.
The country’s trade gap with Middle Eastern nations widened to $5.948 billion during July–November FY26, compared with $5.514 billion in the same period last year.
The rising deficit underlines persistent structural challenges in Pakistan’s external trade, particularly its heavy reliance on energy imports. Furthermore, the trade deficit with the Middle East rose by 7.37 per cent in FY25 to $13.974 billion, up from $13.014 billion in the preceding year.
So far, the policymakers have expressed concern over the growing imbalance, attributing it primarily to increased oil imports from key suppliers such as the United Arab Emirates (UAE) and Saudi Arabia.
In this regard, Pakistan’s shipments to the region fell by 9.85 per cent to $1.217 billion in the first five months of FY26, compared with $1.350 billion a year earlier. The exports to the region also recorded a marginal decline of 1.52 per cent to $3.107 billion.
Moreover, imports from Middle Eastern countries continued to rise. Pakistan’s imports increased by 4.39 per cent to $7.166 billion in July–November FY26, up from $6.864 billion in the same period last year. During FY25, imports from the region surged by 5.64 per cent to $17.081 billion.
Meanwhile, country-wise data shows that exports to Saudi Arabia declined by 10.41 per cent to $272.23 million, while imports from the kingdom rose by 6.66 per cent to $1.596 billion.
The exports to Bahrain, Qatar, and Kuwait showed mixed trends. Pakistan has recently signed a free trade agreement with the Gulf Cooperation Council (GCC) to address trade imbalances and enhance market access.
However, the latest figures indicate that boosting exports and reducing import dependence remain key challenges in strengthening Pakistan’s trade position with the Middle East.
