Trade deficit with regional states balloons 62pc

The country’s trade deficit with nine neighbouring countries swelled by 62 per cent to $2.917 billion in the first quarter of the current fiscal year from $1.80bn. Trade experts attributed the surge mainly to increased imports from China, India and Afghanistan. Since the deficit rise remains unchanged from the previous fiscal year, it may cause policymakers big problems. In FY24, the trade deficit with these countries was $9.506bn, up 49pc from $6.382bn in the preceding fiscal year. Exports to Afghanistan, Bangladesh and Sri Lanka saw an upward trend in the July-September period FY25, but exports to other countries, especially China in the region, continued to decline during the months under review, according to data compiled by the State Bank of Pakistan.