- September 28, 2026
- Posted by: Tresmark
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Pakistan’s trade deficit with Gulf countries increased 2.61% to $3.45 billion during the first two months of fiscal year 2026-27, compared with $3.362 billion in the same period last year, as imports continued to grow faster than exports.
Export growth was supported by higher shipments to Jordan, the UAE and Oman, which rose 34.7%, 13.6% and 5.9%, respectively. Exports to Saudi Arabia, Qatar, Kuwait and Bahrain, however, declined amid continued regional instability.
Imports increased sharply from Qatar, Kuwait, Bahrain and Saudi Arabia, rising 41.9%, 27.6%, 39.4% and 14.7%, respectively. Imports from the UAE and Oman were the only major declines recorded during the period.
Pakistan recorded trade deficits with Saudi Arabia, Qatar, Kuwait and Bahrain. The UAE’s deficit narrowed, while trade with Jordan and Oman remained comparatively balanced.
The Middle East conflict since February 28 has disrupted Pakistan’s trade flows, with weaker exports to several Gulf markets and higher imports from the region increasing pressure on the country’s external account.
Pakistan’s exports to the Middle East rose 7.4% to $550.05 million in July-August FY27, compared with $512.29 million a year earlier. However, imports from the region increased 3.2% to around $4 billion from $3.87 billion.
Saudi Arabia recorded a 1.7% decline in Pakistan’s exports, while imports increased 14.7%, largely reflecting higher demand for oil and other goods.
Exports to the UAE increased 13.6%, while imports declined around 1%, helping reduce Pakistan’s trade imbalance with the country.
Qatar recorded one of the sharpest shifts, with Pakistan’s exports falling 16.5% while imports surged 41.9% during the first two months of FY27, significantly widening the bilateral trade deficit.
