KARACHI: Pakistan’s trade deficit with Gulf nations widened 28.4% to $1.4 billion in July, the first month of the current fiscal year, driven by rising imports from the oil-rich region, State Bank of Pakistan (SBP) data showed this week.
Last year in July, the gap with the six-member Gulf Cooperation Council (GCC) — Saudi Arabia, the United Arab Emirates (UAE), Qatar, Kuwait, Oman and Bahrain — had stood at $1.09 billion.
This time around, exports to the bloc fell 12.5% year-on-year to $277.3 million, while imports rose 19% to $1.68 billion.
Pakistan has been negotiating a free trade agreement (FTA) with the GCC to improve market access and signed preliminary accords in Riyadh two years ago.
“This is a significant development as the FTA is the first by GCC with any country since 2009 and marks a milestone in both sides’ economic cooperation,” then-commerce minister Gohar Ejaz said at the time.
