Trade gap with Middle East balloons 20pc

Pakistan’s trade deficit with the Middle East widened 19.16 per cent to $3.706 billion in the first quarter of 2024-25 from $3.110bn owing to the rise in petroleum imports from the region. According to data compiled by the State Bank of Pakistan, the swelling trade gap would be a source of concern for policymakers. In FY24, the imbalance with the Middle East narrowed by 20.47pc to $13.014bn from $16.365bn over the preceding year, mainly due to lower petroleum imports amid falling consumption of petroleum products thanks to rising prices. Pakistan’s exports to the Middle East rose 15.44pc to $814.2 million in July-September 2024 from $705.27m over the same months last year. In FY24, the exports to the region grew 35.23pc to $3.155bn compared to $2.33bn in the corresponding period last year.