ISLAMABAD: Pakistan’s trade deficit with the Middle East widened 10.87 per cent to $4.781 billion in the first four months of 2024-25 from $4.312bn owing to the rise in petroleum imports from the region.
According to data compiled by the State Bank of Pakistan, the soaring trade deficit would concern policymakers mainly because of rising petroleum products from the region in the current fiscal year.
Petroleum consumption has risen in the current fiscal year because petroleum crude imports saw an over 16 pc growth in the first four months of FY25.
In FY24, the trade imbalance with the Middle East narrowed by 20.47pc to $13.014bn from $16.365bn over the preceding year, mainly due to lower petroleum imports amid falling consumption of petroleum products owing to unprecedented high prices.
Pakistan’s exports to the Middle East rose 12.64pc to $1.082bn in July-October from $705.27m over the same period last year. In FY24, the exports to the region grew 35.23pc to $3.155bn compared to $2.33bn in the corresponding period last year.
At the same time, Pakistan’s imports from the Middle East also saw an increase of 11.18pc to $5.863bn in July-October from $5.273bn over the same period last year. In FY24, the imports declined 13.53pc to $16.16bn compared to $18.69bn in the same period the preceding year.
The demand for Pakistani products surged in the United Arab Emirates (UAE), Saudi Arabia and Qatar during the period under review.
Exports to Saudi Arabia rose 14.23pc to $245.57m in July-October from $214.98m over the last year. In FY24, exports to Saudi Arabia rose 40.98pc to $710.335m from $503.851m in FY23. The imports from the kingdom saw an increase of 18.03pc to $1.332bn against $1.625bn in the same period last year.
Exports to UAE increased 17.94pc to $737.55m in July-October from $625.35m over the last year. In FY24, exports to the UAE surged 41.15pc to $2.082bn from $1.475bn in FY23, primarily due to a significant rise in exports to Dubai.
Pakistan’s top export products to the UAE include rice, bovine carcasses, men’s and boys’ cotton ensembles, guavas and mangoes. In July-October, the imports from UAE also witnessed an increase of 23.46pc to $2.652bn from $2.148bn over the last year month.
Exports to Bahrain declined by 19.44pc to $19.18m in 4MFY25 from $23.81m in the corresponding period last year. The imports from Bahrain increased 155.39pc to $71.69m in 4MFY25 from $28.07m over the previous year.
The exports to Kuwait saw a decline of 9.65pc to $37.53m in 4MFY25 from $41.54m over the previous year. However, the imports increased by 41.67pc to $634.32m from $447.73m over the previous year.
Pakistan’s exports to Qatar saw a negative growth of 21.57pc to $43.06m in the first four months of the current fiscal year against $54.92m over the corresponding months of last year. The imports, however, recorded a growth of 14.43pc to $1.173bn during the months under review as against $1.025bn over the corresponding months of last year.
Published in Dawn, December 8th, 2024
Dear visitor, the comments section is undergoing an overhaul and will return soon.