Pakistan’s trade deficit with Middle East rises 22.38% to $1.32 billion in July

Pakistan’s trade deficit with the Middle East surged by 22.38% in July FY26, reaching $1.323 billion, up from $1.081 billion in the same month last year. The rise was primarily driven by increased imports of petroleum products from the region.

In FY25, the deficit with the Middle East grew by 7.37%, rising to $13.974 billion from $13.014 billion in FY24. This growing trade imbalance has raised concerns among policymakers, with the rising cost of petroleum imports being the main contributor. While petroleum consumption has increased, Pakistan’s exports to the region have seen only modest growth, primarily concentrated in a few countries.

Exports to the Middle East saw a sharp decline of 16.11% in July FY26, falling to $254.15 million from $302.99 million in the same month of the previous year. For FY25, exports to the region decreased by 1.52%, totaling $3.107 billion compared to $3.155 billion in FY24.

Imports from the Middle East, on the other hand, increased by 14.02%, reaching $1.578 billion in July FY26, up from $1.384 billion in the same period last year. In FY25, imports from the region grew by 5.64%, rising to $17.081 billion from $16.169 billion in FY24.

Trade with specific countries in the region showed mixed results. Exports to Saudi Arabia fell by 5.95%, dropping to $54.02 million in July FY26 from $57.44 million in the previous year. Imports from Saudi Arabia also declined by 7.73%, totaling $330.95 million compared to $358.71 million in FY25.

Exports to the UAE saw a significant decline of 18.56%, falling to $176.65 million in July FY26 from $216.92 million in the same month of the previous year. However, imports from the UAE surged by 47.77%, reaching $816.01 million compared to $552.22 million in July FY25.

Exports to Bahrain increased slightly to $5.41 million in July FY26, up from $4.85 million last year. However, imports from Bahrain rose sharply by 429%, reaching $14.01 million compared to just $2.64 million in the same period last year.