ISLAMABAD: Pakistan’s trade deficit with the Middle East narrowed by 24.43 per cent to $11.81 billion in the first 11 months of the current fiscal year from $15.63bn over the same period last year, mainly attributed to a decrease in the import of petroleum products from the region.

The trade imbalance with the region has decreased since the beginning of FY24, primarily because of reduced consumption of petroleum products as prices continued to rise during the months under review.

Pakistan’s exports to the Middle East rose 45.87pc to $2.881bn between July and May 2023-24, compared to $1.975bn in the corresponding period last year.

At the same time, imports dipped 16.54pc to $14.691bn in 11MFY24 against $17.604bn in the same period last year, according to data compiled by the State Bank of Pakistan.

Exports to the region rise 46pc to $2.88bn

Pakistan has recently signed a free trade agreement with the Gulf Cooperation Council (GCC) states to minimise its trade imbalance with the region. A surge in demand for Pakistani products was observed from countries like the United Arab Emirates, Saudi Arabia and Kuwait.

Pakistan witnessed a 7.24pc decline in imports totalling $17.488bn in FY23, down from $18.853bn in the preceding year. In FY23, exports to the Middle East shrank 12.62pc to $2.332bn from $2.669bn in the preceding year.

Exports to Saudi Arabia rose 44.52pc to $661.27m in 11MFY24 from $457.55m in 11MFY23. At the same time, imports from Saudi Arabia decreased by 2.22pc to $4.096bn in 11MFY24 against $4.189bn in the same period last year.

A high-level delegation from the kingdom visited Islamabad last month to explore various sectors for further cooperation.

Exports to the UAE surged 40.19pc to $1.880bn in 11MFY24 from $1.341bn in 11MFY23, primarily due to a significant rise in exports to Dubai. The majority of these exports were directed towards Dubai, amounting to $1.546bn this year, compared to $1.209bn during the same period last year, indicating an increase of 27.87pc.

Pakistan’s top export products to the UAE include rice, bovine carcasses and half carcasses, men’s/boys’ cotton ensembles, guavas, mangoes, etc.

Contrary to this, imports from the UAE declined by 18.25pc to $5.686bn in 11MFY24 against $6.956bn over the corresponding period of last year.

Exports to Kuwait rose 4.12pc to $122.15m in 11MFY24 from $117.31m over the corresponding months last year. Imports from Kuwait declined by 33.65pc to $1.656bn during the period under review against $2.496bn over the corresponding period of last year.

Pakistan’s exports to Qatar posted a paltry growth of 0.01pc to $152.99m from $152.97m in FY23. The imports from Qatar declined by 15.51pc to $3.044bn this year against $3.603bn over the corresponding period last year.

Exports to Bahrain increased by 9.07pc to $64.64m in 11MFY24 from $59.26m over the corresponding period last year. The import from Bahrain declined by 41.84pc to $209.83bn in 11MFY24 against $360.80m over the corresponding period last year.

Published in Dawn, June 28th, 2024