ISLAMABAD: Pakistan’s trade deficit with the Middle East swelled by 7.88 per cent during the first five months of 2025-26, driven by a surge in imports and a decline in exports to the region.

In absolute terms, the trade gap with the Middle East widened to $5.948 billion in July-November from $5.514bn in the same period last year, according to data compiled by the State Bank of Pakistan.

In FY25, the deficit with the region increased 7.37pc to $13.974bn from $13.014bn in the preceding year. The swelling trade deficit is a cause for concern among policymakers, primarily due to the rising influx of petroleum products from the region.

The increase was noted in imports from the region, reflecting higher oil imports from the United Arab Emirates (UAE), followed by Saudi Arabia and other countries.

Exports to the Middle East fell 9.85pc to $1.217bn in 5MFY26 from $1.350bn over the corresponding months of last year. In FY25, exports to the Middle East fell 1.52pc to $3.107bn from $3.155bn over the same period last year.

At the same time, Pakistan’s imports from the Middle East saw an increase of 4.39pc to $7.166bn in 5MFY26 from $6.864bn over the corresponding months of last year. In FY25, imports surged 5.64pc to $17.081bn from $16.169bn over the same period last year.

Pakistan has recently signed a free trade agreement with the Gulf Cooperation Council (GCC) states to minimise its trade imbalance with the region. Demand for Pakistani products in the United Arab Emirates (UAE) declined during the period under review.

Exports to Saudi Arabia fell 10.41pc to $272.232m in July-November FY26 from $303.858m over the same months last year. The imports from the kingdom saw an increase of 6.66pc to $1.596bn against $1.496bn in the same period last year.

Exports to the UAE declined 9.99pc to $833.365m in 5MFY26 from $925.940m over the last year. Pakistan’s top export products to the UAE include rice, bovine carcasses, men’s and boys’ cotton ensembles, guavas and mangoes.

The import from the UAE increased by 13.85pc to $3.675bn from $3.228bn over the corresponding months of last year.

Exports to Bahrain stood at $20.243m in 5MFY26, down 10.44pc from $22.603m in the corresponding period last year. Imports from Bahrain reached $91.662m in 5MFY26, up from $75.009m last year, an increase of 22.20pc.

Pakistan’s exports to Qatar stood at $42.337m, down 16.24pc from $50.549m in the corresponding month of last year. The import from Qatar stood at $1.259bn in 5MFY26, down from $1.371bn over the last year, indicating an 8.15pc decline.

The country’s exports to Kuwait stood at $49.308m in 5MFY26, up from $47.651m over the last year, an increase of 3.47pc. However, imports from Kuwait surged to $543.403m from $693.217m over the last year, an increase of 21.61pc.

Published in Dawn, December 28th, 2025