Rising fuel imports widen ME trade gap

Pakistan’s trade deficit with the Middle East widened by 7.37 per cent to $13.974 billion in FY25 from $13.014bn a year ago, primarily due to a sharp increase in petroleum imports. According to data compiled by the State Bank of Pakistan, the growing deficit reflects the country’s heavy reliance on energy imports from the region, while exports have shown only marginal gains to a limited number of Middle Eastern markets. Crude oil imports rose 15pc in quantity in FY25, contributing to the higher trade imbalance. In contrast, the previous fiscal year had witnessed an improvement, with the trade gap narrowing by 20.47pc to $13.014bn in FY24 from $16.365bn in FY23, mainly due to a decline in petroleum imports amid reduced domestic consumption triggered by higher fuel prices.