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ISLAMABAD: Pakistan’s trade deficit with nine neighbouring countries widened by 30 per cent in the outgoing 2025-26, reaching $15.933 billion compared to $12.256bn in the preceding year.
The increase in the deficit reflects a contraction in Pakistan’s exports to regional markets, largely due to reduced shipments to Afghanistan, Bangladesh, Sri Lanka and other countries. Trade with Afghanistan, including exports, has remained suspended since Oct 10, 2025, further weighing on overall export performance.
On the import side, inflows from China recorded a strong increase during the period under review, contributing significantly to the widening imbalance.
Exports to India registered a marginal rise in percentage terms, though the increase remained negligible in dollar value, according to the latest data compiled by the State Bank of Pakistan.
