Pakistan’s trade deficit with its nine neighboring countries has risen by 36.09%, reaching $7.36 billion in the first eight months of FY25. This is up from $5.41 billion during the same period last year. Despite higher exports to Afghanistan, Bangladesh, and Sri Lanka, imports from China, India, and Bangladesh have widened the trade gap.
Exports to these nine countries grew by 6.64%, totaling $3.1 billion in the first eight months of FY25. However, Pakistan’s export share remains low at around 14.04%. Governments policies have hindered trade, limiting potential gains despite some regional improvements.
Imports from neighboring countries surged by 25.80%, hitting $10.46 billion in FY25, compared to $8.32 billion in FY24. Notably, imports from China accounted for a large portion, growing by 25.87%. Imports from India also increased by 13.63%.
While exports to Afghanistan rose significantly by 84.25%, reaching $592.84 million, imports from Afghanistan also grew. They climbed to $18.21 million, up from $5.47 million last year. Overall, the trade dynamics reflect a complex situation requiring attention to boost exports and manage imports effectively.