Pakistan’s exports to the Middle East declined 8 percent year-on-year in April, reflecting the growing impact of regional conflict on the country’s trade with one of its key external markets.
According to central bank data, shipments to the region dropped to $230.079 million during the month. Exports to the UAE, Qatar, Kuwait, Bahrain and Jordan all recorded declines, while exports to Saudi Arabia posted only marginal growth, suggesting a loss of momentum in Pakistan’s regional trade performance.
In contrast, imports from the Middle East rose 5 percent in April to $1.548 billion, compared with $1.474 billion in the same month last year. The increase was mainly driven by higher imports from the UAE, Kuwait and Jordan, although imports from Qatar, Bahrain and Saudi Arabia declined.
The contrasting movement in exports and imports highlights Pakistan’s exposure to geopolitical tensions in the Middle East, particularly because of its heavy dependence on the region for energy supplies. The UAE and Saudi Arabia account for roughly 90 percent of Pakistan’s energy imports from the Middle East, while Qatar, Kuwait, Oman and Bahrain remain secondary suppliers.
On a cumulative basis, Pakistan’s exports to the Middle East fell 2 percent to $2.635 billion in the first 10 months of FY2025-26, down from $2.676 billion a year earlier. Imports from the region also declined 3 percent to $13.898 billion during the same period, compared with $14.370 billion last year.
As a result, Pakistan’s trade deficit with the Middle East narrowed 4 percent to $11.263 billion in July-April FY2025-26, compared with $11.694 billion in the corresponding period of the previous fiscal year.
Trade with Saudi Arabia remained mixed. Exports to the kingdom fell 4 percent to $583.94 million in 10MFY26 from $607.21 million a year earlier, although April exports showed a slight uptick. Imports from Saudi Arabia rose 4 percent to $3.316 billion in the July-April period, but fell 2 percent year-on-year in April.
Trade flows with the UAE also showed uneven performance. Exports to the UAE edged up 0.35 percent to $1.786 billion in 10MFY26 from $1.780 billion a year earlier, but April exports dropped 7 percent. Imports from the UAE increased 5 percent to $6.944 billion in the first 10 months of the fiscal year, while April imports surged 30 percent from a year earlier.
Among smaller regional markets, Pakistan’s April exports fell 39 percent to Bahrain, 21 percent to Qatar, 36 percent to Kuwait and 26 percent to Jordan. On the import side, purchases from Bahrain plunged 73 percent and from Qatar 97 percent, while imports from Kuwait and Jordan increased.
