Islamabad: The commercial deficit of Pakistan with nine neighboring countries extended at 34.64 percent, reaching $ 9,787 billion in the first ten months of the current fiscal year (FY25), compared to $ 7,269 billion during the same period last year.
Exports witnessed significant growth for Bangladesh, Afghanistan and Sri Lanka, stimulated by recent changes in the regional political landscape. However, trade with these countries continues to face considerable challenges, largely due to unfavorable government policies.
Despite this positive development in exports, the general commercial gap with regional countries was extended, mainly due to the increase in imports from China, India and Bangladesh during the period under review.
In fiscal year24, the commercial deficit with these countries was $ 9,506 billion, an increase of 49 percent from $ 6,382 billion in the previous year.
Export gains to Afghanistan, Bangladesh and Sri Lanka are compensated through very high imports
Pakistan’s exports to Afghanistan, Bangladesh and Sri Lanka saw strong growth in July-April 2015. Even so, exports to other countries, especially China, continued to decrease 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, Bután and Las Maldivas, increased 2.37pc to $ 3,743 billion in July-April of 25 years of $ 3,656 billion during the same period last year.
Contrary to this, imports increased 23.84pc to $ 13,530 billion in 10mfy25 from $ 10,925 billion during the same period of the previous fiscal year.
A subsequent analysis showed that China imports grew by 23.87pc to $ 13,191 billion in 10mfy25 from $ 10,649 billion during the same period last year. In the fiscal year24, China imports were $ 13,506 billion, at 39.78pc of $ 9,662 billion during the previous year. Most imports in the region are obtained from China, partially followed by India and Bangladesh.
Pakistan exports to China fell 11.65pc to $ 2,070 billion in 10mfy25 from $ 2,343 billion during the same months in the previous fiscal year.
India imports increased 14.35pc to $ 196.77m in 10mfy25 from $ 172.07 million during the last year. In fiscal year24, India imports increased 8,866pc to $ 206.89m, compared to $ 190.04m in the same period last year.
Meanwhile, exports to India remained at $ 0.51 million in 10mfy25 against $ 1.25 million during the last year. Exports to India stood at $ 3,669 million in the fiscal year24 against $ 0.329 million in the same period of the previous year.
Exports to Afghanistan increased 52.46pc to $ 666.59 million in 10mfy25 from $ 437.22 million last year. Imports were $ 22.77 million against $ 7.38m in 10mfy24, a 208pc growth.
The Torakham border station remained closed for almost 27 days last month, which interrupted imports and exports to Afghanistan.
Pakistan’s main exports to Afghanistan include sugar in the current fiscal year. In the last four months, Pakistan exported more than 700,000 tons of sugar, mainly to Afghanistan.
There are no formal data available for trade with Iran, since most occur through informal channels. However, Pakistan has adopted a barter commercial agreement, especially as the smuggling of Iranian oil products and LPG continues through the Baluchistan porous border.
Exports to Bangladesh increased by 24.77pc to $ 668.94m in 10mfy25 from $ 536.12m. Imports grew 43.35pc to $ 68.87m in 10mfy from $ 48.04 million during the last year. The increase in trade followed the expulsion of the government of Hasina in Dhaka. Pakistan has resumed rice exports to Bangladesh in the current fiscal year.
Exports to Sri Lanka fell 0.52pc to $ 326.90m in 10mfy25 from $ 328.62m the last year. This decrease was attributed to a reduced economic activity in Sri Lanka. Sri Lanka imports remained static at $ 49 million during the months under review.
Nepal shipments fell to $ 2.17 million of $ 2.42 million during the last year.
Exports to Maldives increased to $ 7.96 million in 10mfy25 from $ 7.67 million during the last year. There was no commercial activity between Pakistan and Bután during the current fiscal year or the corresponding period of last year.
Posted in Dawn, May 22, 2025
