Pakistan’s trade deficit with nine neighbouring countries widened sharply in the first quarter of fiscal year 2026-27, climbing 26.62 per cent to $4.97 billion from $3.93 billion in the same months a year earlier. State Bank of Pakistan data show the Pakistan trade deficit with this regional group grew as imports surged and shipments to several nearby markets contracted.
The nine partners covered are Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan and the Maldives. Combined exports to them fell 6.72 per cent to $944.24 million in July–September FY27, down from $1.01 billion a year earlier. Imports from the same group rose 19.79 per cent to $5.92 billion from $4.94 billion.
China accounts for most of the wider gap
Higher purchases from China were the main driver. Imports from China grew 19.76 per cent to $5.82 billion from $4.85 billion. Pakistan’s exports to China also rose, by 17.95 per cent to $663.57 million from $562.56 million, but that gain was far smaller than the jump in imports. As a result, the bilateral deficit with China widened by $858.808 million—about 82.18 per cent of the increase in the combined deficit with the nine countries. That pattern underlines how the Pakistan trade deficit with China shaped the regional picture this quarter.
Exports slip as Afghanistan trade stays shut
Weaker regional sales also widened the imbalance. Shipments to Afghanistan, Bangladesh and Sri Lanka declined. Exports to Afghanistan fell 88.34 per cent to $18.86 million from $161.76 million, while imports from Afghanistan dropped 94.40 per cent to $0.25 million from $4.52 million. Trade with Afghanistan, including exports, has remained suspended since 10 October 2025, weighing on overall export performance.
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. Exports to Nepal rose in percentage terms, though the dollar gain was described as negligible. Imports from India rose 68.90 per cent to $61.74 million from $36.55 million, and 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 and remains so into the latest quarter.
- July–September FY26: Pakistan’s deficit with the nine neighbours stands at $3.93 billion; exports to the group total about $1.01 billion and imports $4.94 billion.
- July–September FY27: The regional deficit widens to $4.97 billion as exports fall to $944.24 million and imports rise to $5.92 billion, with China imports at $5.82 billion.
Aasan alfaaz mein
Pakistan ne pehle teen mahine mein paas ke nau mulkoun se zyada saman kharida aur kam becha. Is wajah se tijarati khasara barh kar lagbhag 4.97 arab dollar ho gaya. Sab se bari wajah China se aane wala saman tha. Afghanistan ke sath tijarat band hone se wahan ki exports bhi bohot gir gain, jis se mulk ki kamai kam hui.
