Trade deficit with Gulf nations narrows

ISLAMABAD: Pakistan’s trade deficit with the Middle East narrowed 41.31 per cent to $5.674 billion in the first seven months of the current fiscal year mainly due to low imports of petroleum products from the region. In absolute terms, the value of Pakistan’s exports to the Middle East rose 36.18pc to $1.769bn between July and January 2023-24 while imports dipped 31.69pc to $7.443bn, showing a massive contraction in trade deficit to $5.674bn from $9.668bn in the same period last year, according to data compiled by the State Bank of Pakistan (SBP). The exports stood at $1.229bn while imports totalled $10.897bn in January-July FY23. The government has recently signed a free trade agreement with the Gulf Cooperation Council (GCC) states which was aimed to minimise the trade balance with the region.