Pakistan's Trade Deficit with Neighboring Countries Continues to Expand

Pakistan's trade deficit with nine neighboring countries has increased by 32.82% to $11.17 billion in the first 11 months of FY25, according to official data released by the State Bank of Pakistan (SBP). The deficit rose from $8.41 billion in the same period last year, despite notable growth in exports to Afghanistan, Bangladesh, and Sri Lanka. Rising imports, particularly from China, India, and Bangladesh, have contributed to the expanding trade gap. While exports to China, Pakistan's largest trading partner in the region, have declined, imports from China continue to surge, deepening the trade imbalance.

Key Takeaways:

Pakistan's trade deficit with nine neighboring countries increased by 32.82% to $11.17 billion in the first 11 months of FY25.
Exports to Afghanistan surged by 41.39% to $723.44 million, while imports from Afghanistan rose by 142% to $24.72 million.
Exports to Bangladesh increased by 21.45% to $728.31 million, while imports grew by 41.95% to $73.55 million.
Imports from China grew by 22.59% to $14.89 billion in FY25, compared to $12.146 billion in FY24.
Exports to China fell by 11.18% to $2.270 billion, down from $2.556 billion in FY24.
Imports from India increased by 11.82% to $211.42 million in FY25, up from $189.07 million in FY24.
Exports to India remained minimal at $0.51 million, compared to $3.43 million last year.

Statistics:

Trade deficit with neighboring countries: $11.17 billion (FY25) vs $8.41 billion (FY24)
Increase in trade deficit with neighboring countries: 32.82%
Exports to Afghanistan: $723.44 million (FY25) vs $511.78 million (FY24)
Growth in exports to Bangladesh: 21.45%
Imports from China: $14.89 billion (FY25) vs $12.146 billion (FY24)
Decline in exports to China: 11.18%
Increase in imports from India: 11.82%
Exports to India: $0.51 million (FY25) vs $3.43 million (FY24)

Sources:

State Bank of Pakistan (SBP) data released August 2023.