Pakistan’s Exports to Middle East Decline 8% Amid Regional Uncertainty
Pakistan’s exports to the Middle East recorded an 8% year-on-year decline in April, reflecting the impact of ongoing regional tensions on trade flows with one of its key economic partners.
According to central bank data, outbound shipments to the region fell to $230.079 million during the month. Exports to several Gulf markets, including the United Arab Emirates, Qatar, Kuwait, Bahrain, and Jordan, all showed a decline, while shipments to Saudi Arabia posted only marginal growth.
Imports Rise Despite Export Slowdown
In contrast, imports from the Middle East increased by 5% in April, reaching $1.548 billion compared to $1.474 billion in the same period last year. Higher imports from the UAE, Kuwait, and Jordan contributed to this rise, while imports from Qatar, Bahrain, and Saudi Arabia declined.
The trend highlights Pakistan’s continued reliance on the Middle East for energy and other essential imports, making it vulnerable to geopolitical and market disruptions in the region.
Longer-Term Trade Performance
For the first 10 months of FY2025-26, exports to the Middle East declined 2% to $2.635 billion compared to the previous year. Imports also fell 3% to $13.898 billion, helping reduce the overall trade deficit by around 4%.
Trade patterns with major partners remained mixed. Exports to Saudi Arabia dropped over the 10-month period, while imports from the Kingdom increased. Similarly, trade with the UAE showed uneven movement, with exports slightly higher over the fiscal period but lower in April, while imports from the UAE continued to grow.
Sharp Declines in Smaller Markets
Among smaller Gulf partners, exports saw significant declines in April, including sharp drops to Bahrain, Qatar, Kuwait, and Jordan. On the import side, Bahrain and Qatar recorded steep reductions, while Kuwait and Jordan saw increases.
