Pakistan's trade deficit with nine neighbouring countries widened by 26.62 per cent to $4.97 billion in the first quarter of fiscal year 2026-27, from $3.93 billion in the same period a year earlier, according to State Bank of Pakistan data.
The larger gap came as exports to the region contracted and imports rose, especially from China. Officials and traders will watch whether the imbalance eases once Afghan trade resumes and regional shipments recover.
Exports down, imports up across nine markets
Exports to Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan and the Maldives fell 6.72 per cent to $944.24 million in July–September FY27, from $1.01 billion a year earlier. Imports from the same group surged 19.79 per cent to $5.92 billion, from $4.94 billion.
Shipments to Afghanistan, Bangladesh and Sri Lanka declined. Exports to China rose in percentage terms, and those to Nepal also grew on a percentage basis, though the dollar gain for Nepal remained small. The State Bank of Pakistan (SBP), the country’s central bank, compiled the figures.
China accounts for most of the wider gap
Imports from China rose 19.76 per cent to $5.82 billion in the quarter, from $4.85 billion. Pakistan’s exports to China grew 17.95 per cent to $663.57 million, from $562.56 million. Even so, the bilateral deficit with China widened by $858.808 million—about 82.18 per cent of the rise in the combined deficit with the nine countries.
That pattern means most of the fresh pressure on Pakistan's trade deficit with its neighbours came from buying more from China than the country sold back, rather than from every neighbour equally.
Afghanistan and Bangladesh weigh on exports
Trade with Afghanistan, including exports, has been suspended since 10 October 2025. Exports to Afghanistan fell 88.34 per cent to $18.86 million, from $161.76 million. Imports from Afghanistan dropped 94.40 per cent to $0.25 million, from $4.52 million.
Exports to Bangladesh eased 2.96 per cent to $174.77 million, from $180.12 million. Imports from Bangladesh fell 36.11 per cent to $13.88 million, from $21.73 million.
Imports from India rose 68.90 per cent to $61.74 million, from $36.55 million, while no exports to India were recorded in the quarter.
Timeline: what has happened so far
- 10 October 2025: Trade with Afghanistan, including exports, is suspended.
- July–September FY26: Regional deficit with the nine countries stands at $3.93 billion; exports to them total about $1.01 billion and imports $4.94 billion.
- July–September FY27: Regional deficit widens to $4.97 billion; exports fall to $944.24 million and imports rise to $5.92 billion, with Chinese imports at $5.82 billion.
Aasan alfaaz mein
Pakistan ke nau qareebi mamalik ke saath trade deficit pehli quarter mein $4.97 billion tak pahunch gaya, jo pehle se zyada hai. Hum unhein kam bech rahe hain aur China se zyada maal khareed rahe hain. Afghanistan ke saath tijarat band hone se exports aur geerein. Is se dollar ki zarurat barhti hai, jo baad mein prices aur currency par asar dal sakti hai.
