Trade deficit with Middle East soars 22pc

Pakistan’s trade deficit with the Middle East surged by 22.38 per cent in the first month of FY26, largely driven by the rising influx of petroleum products from the region. According to data compiled by the State Bank of Pakistan, the trade deficit with the Middle East reached $1.323 billion in July FY26, up from $1.081bn during the same month last year. In FY25, the deficit with the region increased by 7.37pc, rising to $13.974bn from $13.014bn in the previous year. The growing trade imbalance has raised concerns among policymakers, with the primary culprit being the rising import of petroleum products from the Middle East. While petroleum consumption has increased, exports to the region have only seen modest growth, concentrated in a limited number of countries.