ISLAMABAD: Pakistan’s trade imbalance with the Middle East has significantly improved, narrowing by 20.47 per cent to $13.014 billion in 2023-24 from $16.365bn the preceding year, owing primarily to lower petroleum imports from the region.
The trade imbalance with the region has seen a decrease since the beginning of the current fiscal year. This can be attributed to a decline in the consumption of petroleum products, which is a result of the continuous rise in prices during the months under review.
In absolute terms, Pakistan’s exports to the Middle East rose 35.23pc to $3.155bn between July-June FY24 compared to $2.33bn in the corresponding period last year.
At the same time, imports dipped 13.53pc to $16.16bn in FY24, compared to $18.69bn in the same period last year, according to data compiled by the State Bank of Pakistan.
Pakistan has recently signed a free trade agreement with the Gulf Cooperation Council (GCC) states to minimise its trade imbalance with the region.
Pakistan witnessed a 7.24pc decline in imports totalling $17.49bn in FY23, down from $18.85bn in the preceding year. In FY23, exports to the Middle East shrunk 12.62pc to $2.33bn from $2.67bn in the preceding year.
However, the demand for Pakistani products has surged in the United Arab Emirates (UAE), Saudi Arabia and Kuwait.
Exports to Saudi Arabia rose 40.98pc in FY24 to $710.335 million from $503.851m in FY23. At the same time, imports from Saudi Arabia declined by 0.01pc to $4.49bn in FY24 against $4.50bn in the same period last year.
Published in Dawn, July 26th, 2024
