Trade gap with nine regional states widens

Pakistan’s trade deficit with nine neighbouring countries widened by 47.55 per cent to $4.474 billion in the first five months of the current fiscal year from $3.032bn in the corresponding period last year. Trade analysts attributed the widening gap to higher imports from China and India. During the months under review, China’s imports increased the most, while Pakistan’s exports to the same country decreased. In contrast to last year, exports to Afghanistan, Bangladesh, and Sri Lanka increased unusually. This growth has largely offset the decline in exports to China. The soaring deficit may cause policymakers big problems. In FY24, the trade deficit with these countries was $9.506bn, up 49pc from $6.382bn in the preceding year.