Low oil imports trim trade gap with Middle East

Pakistan’s trade deficit with the Middle East narrowed 28.18 per cent to $9.521 billion in the first nine months of the current fiscal year from $13.257bn during the corresponding period last year, mainly due to reduced imports of petroleum products from the region. The trade imbalance with the region has shrunk since the start of the current fiscal year due to the lower use of petroleum goods as prices have steadily increased. In absolute terms, Pakistan’s exports to the Middle East rose 32.71pc to $2.276bn during July-March 2023-24, compared to $1.715bn in the corresponding period last year. At the same time, imports dipped 21.2pc to $11.797bn in 9MFY24 against $14.972bn in the same period last year, according to data compiled by the State Bank of Pakistan (SBP). Pakistan has recently signed a free trade agreement with the Gulf Cooperation Council (GCC) states to minimise its trade imbalance with the region.