Trade gap widens 42pc with nine countries to $9bn

ISLAMABAD: Pakistan’s trade deficit with nine regional countries swelled by 41.37 per cent to $9.001 billion in the first seven months (July-January) of FY26, up from $6.367bn in the corresponding period last year.

The widening gap reflects a fall in Pakistan’s exports to regional markets, driven largely by reduced shipments to China, followed by Afghanistan and Bangladesh. Trade with Afghanistan, including exports, has remained suspended since October 10, 2025.

Exports to India posted a slight increase in percentage terms, though the rise was minimal in dollar value. Meanwhile, shipments to Bangladesh and Sri Lanka declined during the period under review, according to the latest figures released by the State Bank of Pakistan.

The trade deficit with the nine countries widened by 29.42pc to $12.297bn in FY25 compared to $9.502bn in the preceding year.

The value of Pakistan’s exports to the nine countries — Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan and the Maldives — declined by 16.86pc to $2.307bn in 7MFY26 compared to $2.775bn a year ago.

In FY25, exports to these nine countries recorded a modest increase of 1.49 per cent, rising to $4.401........

© Dawn Business