Pakistan’s Imports from Neighbors Soar, Exports Lag Behind in FY25

Pakistan’s trade deficit with nine neighboring countries expanded by 34.64% in the first ten months of the fiscal year 2024-25 (FY25), reaching $9.787 billion compared to $7.269 billion during the same period last year.

Exports to Bangladesh, Afghanistan, and Sri Lanka witnessed significant growth, driven by recent regional political changes.

However, despite these gains, overall exports to the nine neighboring countries, Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan, and the Maldives, rose modestly by 2.37% to $3.743 billion in July-April FY25 from $3.656 billion in the same period last year.

The widening trade gap is primarily attributed to increased imports from China, India, and Bangladesh. Total imports from these nine countries surged by 23.84% to $13.530 billion in 10MFY25 from $10.925 billion over the same period of the previous fiscal year.
Profit by Pakistan Today

Country-Specific Trade Dynamics

• China: Imports from China grew by 23.87% to $13.191 billion in 10MFY25 from $10.649 billion over the same period last year. However, exports to China dipped 11.65% to $2.070 billion from $2.343 billion.
• India: Imports from India increased by 14.35% to $196.77 million in 10MFY25 from $172.07 million over the last year. Exports to India remained minimal at $0.51 million in 10MFY25 against $1.25 million over the last year.
• Afghanistan: Exports to Afghanistan increased by 52.46% to $666.59 million in 10MFY25 from $437.22 million last year. Imports stood at $22.77 million against $7.38 million in 10MFY24, a growth of 208%.
• Bangladesh: Exports to Bangladesh increased by 24.77% to $668.94 million in 10MFY25 from $536.12 million. Imports grew 43.35% to $68.87 million in 10MFY25 from $48.04 million over the last year.
• Sri Lanka: Exports to Sri Lanka dropped 0.52% to $326.90 million in 10MFY25 from $328.62 million the previous year. Imports from Sri Lanka remained static at $49 million during the months under review.

Despite positive export trends to certain neighboring countries, Pakistan’s trade deficit with its regional partners continues to widen, primarily due to surging imports from China, India, and Bangladesh. Addressing this imbalance requires strategic trade policies and diversification of export markets.