Dawn
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01:02 Jan 25, 2026
ISLAMABAD: Pakistan’s trade deficit with nine neighbouring countries widened by 44.42 per cent to $7.683 billion in the first half of FY26 compared to $5.320bn during the same period last year. The soaring deficit was mainly due to a decline in Pakistan’s overall exports to regional countries, led by a drop in shipments to China, followed by Afghanistan and Bangladesh. Pakistan has suspended all kinds of trade, including exports, with Afghanistan since Oct 10, 2025. In percentage terms, exports to India increased marginally, but in value terms, it is negligible. The shipments to Bangladesh and Sri Lanka registered negative growth during the period under review, according to the latest data compiled by the State Bank. In FY25, the trade deficit with these nine neighbouring countries widened by 29.42pc to $12.297bn, up from $9.502bn in the preceding year. The value of exports to Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan and the Maldives dipped 18.56pc to $1.965bn in July-December F...