Trade gap with Gulf widens

Dawn reported that the shortfall in Pakistan's trade with Gulf partners grew 2.61 per cent to $3.450 billion over the first two months of fiscal year 2026-27. A year earlier the deficit was $3.362 billion, and purchases from the region grew faster than sales to it. The figures were compiled by the State Bank of Pakistan.

Export proceeds rose moderately, led by Jordan (34.7 per cent), the UAE (13.6 per cent) and Oman (5.9 per cent), while Saudi Arabia, Qatar, Kuwait and Bahrain recorded declines. Imports from Qatar climbed 41.9 per cent, from Bahrain 39.4 per cent, from Kuwait 27.6 per cent and from Saudi Arabia 14.7 per cent. Only the UAE and Oman recorded lower imports in the period.

Dawn linked the trend to the Middle East conflict, which has disrupted trade since February 28. Energy imports, mainly from the UAE and Saudi Arabia, accounted for 90 per cent together. Exports to Qatar fell 16.5 per cent, while its imports rose 41.9 per cent.