Pakistan’s trade deficit with several Gulf countries widened during the first two months of FY27 as imports increased while exports showed mixed performance, according to data compiled by the State Bank of Pakistan.
Export proceeds recorded moderate growth, led by increases in shipments to Jordan, the UAE and Oman, which rose by 34.7 per cent, 13.6pc and 5.9pc, respectively. However, exports to Saudi Arabia, Qatar, Kuwait and Bahrain declined amid continued regional instability.
Imports from Qatar, Kuwait, Bahrain and Saudi Arabia increased by 41.9pc, 27.6pc, 39.4pc and 14.7pc, respectively. During July-August FY27, imports from only the UAE and Oman recorded declines.
Imports exceeded exports in Saudi Arabia, Qatar, Kuwait and Bahrain. Pakistan’s trade deficit with the UAE narrowed slightly, while trade with Jordan and Oman remained relatively balanced.
The conflict in the Middle East since Feb 28 has affected Pakistan’s trade flows, with exports to several Gulf states declining while imports from the region increased. The trend has added pressure to Pakistan’s external position and highlighted its dependence on Gulf countries for energy and raw materials.
August marked the sixth consecutive month of contraction since March, indicating that Pakistan’s import flows remain sensitive to geopolitical developments, particularly disruptions along major energy routes.
Pakistan continued to rely heavily on energy imports from the UAE and Saudi Arabia, which together accounted for around 90pc of the country’s energy imports from the region. Qatar, Kuwait, Oman, Jordan and Bahrain remained relatively smaller contributors.
Pakistan’s exports to the Middle East increased by 7.4pc to $550.045 million during July-August FY27, compared with $512.293m during the same period last year. In FY26, exports to the region declined by 2pc to $3.093 billion from $3.152bn a year earlier.
Imports from the Middle East, meanwhile, increased by 3.2pc to $4bn during the first two months of FY27, compared with $3.874bn in the corresponding period last year. In FY26, imports from the region fell by 4pc to $16.413bn from $17.097bn.
Country-wise data showed that Pakistan’s exports to Saudi Arabia declined by 1.7pc during July-August FY27 compared with the same period last year. Imports from the country, however, rose by 14.7pc, reflecting increased demand for Saudi products, particularly oil, and widening the bilateral trade deficit.
Exports to the UAE increased by 13.6pc during the period, with notable growth in shipments to Abu Dhabi, Ajman and Fujairah. Imports from the UAE fell by around 1pc, mainly due to lower petroleum and commodity inflows, helping reduce Pakistan’s trade imbalance with the country.
Exports to Qatar declined by 16.5pc during the first two months of FY27, while imports surged by 41.9pc. The sharp increase in imports reflects higher energy-related purchases and is expected to further widen Pakistan’s trade deficit with Qatar.
