Higher petroleum imports widen trade gap with Middle East

Pakistan’s trade deficit with the Middle East increased 3.86 per cent to $5.514 billion in the first five months of 2024-25 from $5.309bn due to the rise in petroleum imports. According to data compiled by the State Bank of Pakistan, the widening trade gap would concern policymakers mainly because of the rising arrival of petroleum products from the region. Petroleum consumption has risen in the current fiscal year because the crude oil import surged 17.81pc in quantity in the first five months of the current fiscal year. In FY24, the imbalance with the Middle East narrowed by 20.47pc to $13.014bn from $16.365bn over the preceding year, mainly due to lower petroleum imports amid falling consumption owing to rising local prices. Exports to the Middle East rose 8.52pc to $1.349bn in July-November from $1.243bn over the same period last year. In FY24, the exports to the region grew 35.23pc to $3.155bn compared to $2.33bn in the preceding year.