- July 22, 2026
- Posted by: Tresmark
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Pakistan's trade deficit with nine neighbouring countries widened by 30% to USD 15.93 billion in FY2025-26, driven by higher imports from China and weaker exports across the region.
According to State Bank of Pakistan data, exports to neighbouring markets declined 11% to USD 3.95 billion, while imports rose 19.1% to USD 19.89 billion, significantly widening the trade imbalance.
The sharp increase in the deficit was largely attributed to a surge in imports from China and a steep decline in exports to Afghanistan following the suspension of bilateral trade in October 2025. Exports to Bangladesh and Sri Lanka also fell during the fiscal year.
China remained Pakistan's largest regional trading partner, accounting for around 68% of regional exports and 98% of imports. Exports to China increased 8.4% to USD 2.68 billion, while imports from the country climbed 19.8% to USD 19.54 billion.
Exports to Afghanistan dropped nearly 69% to USD 243.7 million, while exports to Bangladesh and Sri Lanka declined 9.3% and 22.8%, respectively. Although exports to India more than doubled in percentage terms, the overall value remained modest at USD 2.9 million.
