Pakistan trade imbalance with 9 states deepens

Pakistan’s trade deficit with nine neighbouring countries surged by 34.54 per cent in the first quarter of the current fiscal year (FY26), rising to $3.93 billion compared to $2.921bn recorded during the same months last year. The increase in deficit is mainly the outcome of a decline in Pakistan’s overall exports to regional countries, except China, where Pakistan’s exports showed signs of recovery in the first three months of the current fiscal year. A marginal increase was also recorded in exports to Sri Lanka, while shipments to Bangladesh and Afghanis­tan registered negative growth during the period under review, according to the latest data compiled by the State Bank of Pakistan. In FY25, Pakistan’s trade deficit with nine neighbouring countries expanded by 29.42pc to $12.297bn compared to $9.502bn recorded during the same period last year.