Pakistan’s trade deficit with nine neighboring countries surged by 44.42% to $7.683 billion in the first half of fiscal year 2025-2026, up from $5.32 billion a year earlier. The increase is mainly due to a drop in exports, notably to China, Afghanistan, and Bangladesh. Trade with Afghanistan has been halted since October 10, 2025, impacting regional trade flows.
Exports to India showed a slight rise in percentage but remained low in value. Conversely, exports to Bangladesh and Sri Lanka saw negative growth during the period. Total exports to the nine countries decreased by 18.56% to $1.965 billion, while imports surged by 24.76% to $9.648 billion in the same period.
China continues to be the primary source of Pakistan’s imports, increasing by 25.61% to $9.472 billion. However, exports to China declined by 5.59% to $1.216 billion. Imports from India dropped by 12.73% to $97.734 million, while exports to India slightly rose to $2.926 million.
The trade gap widening trend observed in FY25 continued into FY26, with the deficit growing by 29.42% to $12.297 billion from $9.502 billion. This highlights persistent challenges for Pakistan’s regional trade balance.
