Trade gap with neighbours widens 29pc in FY25

Pakistan’s trade deficit with nine neighbouring countries expanded by 29.42 per cent in FY25, rising to $12.297 billion compared to $9.502bn in the preceding year. Exports registered notable growth to Bangladesh, Afghanistan, and Sri Lanka, largely attributed to recent shifts in the regional political landscape. However, trade relations with these countries have remained strained in recent years, primarily due to challenges stemming from restrictive government policies. Despite the uptick in exports, the overall trade gap with regional partners widened, driven predominantly by increased imports from China, India, and Bangladesh during the months under review. In FY24, the trade deficit with these countries was $9.506bn, up 49pc from $6.382bn in the preceding year.