Trade deficit with Middle East crosses $10bn

Pakistan’s trade deficit with the Middle East increased 10.11 per cent to $10.502 billion in the first nine months of FY25 from $9.538bn in the same period last year due to higher petroleum imports. The growing trade deficit raises concerns among decision-makers, mainly due to the rising influx of petroleum products. Meanwhile, export growth to select countries in the region remains minimal, according to data compiled by the State Bank of Pakistan. Petroleum consumption has risen in the current fiscal year because the crude oil import rose 14.61pc in quantity in the first eight months of the FY25 from a year ago. 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.