Trade gap with nine countries widens 36pc

Pakistan’s trade deficit with nine neighbouring countries swelled by 36.09 per cent to $7.36 billion during the first eight months of FY25 from $5.41bn in the corresponding period last year. Recent regional political shifts have spurred exports to Bangladesh, Afghanistan, and Sri Lanka. However, Pakistan’s trade with these nations has faced significant setbacks in recent years, attributed to the challenges posed by unfavourable governmental policies. However, the trade gap with the regional countries widened mainly due to higher imports from China, India and Bangladesh during the months under review. Pakistan’s exports to Afghanistan, Bangladesh and Sri Lanka surged in July-February FY25. Still, exports to other countries, especially China, continued to decline during the period, according to data compiled by the State Bank of Pakistan.