ISLAMABAD: Pakistan’s trade deficit with nine neighboring countries increased by 43.22 percent to $5.328 billion during the first half of the current fiscal year (FY25), from $3.72 billion in the corresponding period last year.
The trade gap with countries in the region widened mainly due to increased imports from China, India and Bangladesh during the months under review.
Imports from China increased the most, while Pakistan’s exports to the same country decreased.
Unlike last year, exports to Afghanistan, Bangladesh and Sri Lanka increased unusually. This growth has largely offset the decline in exports to China.
In FY24, the trade deficit with these countries was $9.506 billion, up 49 percent from $6.382 billion the previous year.
Pakistan’s exports to Afghanistan, Bangladesh and Sri Lanka saw negligible growth in July-December FY25. Still, exports to other countries, especially China, continued to decline during the period, according to data compiled by the State Bank of Pakistan.
The value of Pakistan’s exports to nine countries (Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan and the Maldives) increased by 7.85 percent to $2.404 million in July-December FY25, up from $2.229 billion in the same period last year.
Pakistan’s total exports reached $16.56 billion in the first half of FY25, up 10.52 percent from $14.98 billion in the corresponding months of last year.
Pakistan’s share in total exports to regional countries is around 14.51 percent.
On the contrary, imports increased by 29.97% to $7,732 million in 6MFY25 from $5,949 million in the same period of the previous fiscal year.
Further analysis showed that imports from China grew 30.42 per cent to $7,541 million in 6MFY25 from $5,782 million during the same period last year. In FY24, imports from China amounted to $13.506 billion, up 39.78 percent from $9.662 billion a year earlier. Most of the region’s imports come from China, partially followed by India and Bangladesh.
Published in Dawn, January 19, 2025
