ISLAMABAD: Exports to nine regional countries rose by 5.10 percent in the first month of the current fiscal year compared to the same period last year, largely driven by increased shipments to China, Sri Lanka, and Bangladesh. This uptick reflects recent changes in the regional political environment, although trade relations with these countries have been constrained in recent years due to restrictive government policies.
Data from the State Bank of Pakistan shows that exports to Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan, and the Maldives reached $357.01 million in July, up from $339.68 million in the corresponding month of the previous year. For FY25, regional exports recorded a modest growth of 1.49 percent, rising to $4.401 billion from $4.336 billion in FY24.
China remains Pakistan’s largest regional trading partner, accounting for 60 percent of total regional exports. Exports to China surged 24.70 percent in July to $199.65 million, compared to $160.10 million in July last year. However, on an annual basis, exports to China fell 8.6 percent in FY25, declining to $2.476 billion from $2.709 billion the previous year.
Imports from China also increased, rising 14.68 percent in July to $1.695 billion from $1.478 billion last year. For FY25, imports from China grew 20.79 percent, reaching $16.312 billion from $13.504 billion.
Exports to Afghanistan, historically one of Pakistan’s top trading partners, dropped sharply by 38.23 percent to $54.39 million in July FY26, compared to $88.06 million last year. This decline is partly due to shifting trade dynamics and the lack of official data on cross-border trade.
Exports to Iran were negligible via official channels in July FY26, with most trade occurring informally through Balochistan border areas, often in barter form. Similarly, exports to India remained minimal at $1.15 million, as much of the trade is routed through third-party markets like Dubai and Singapore, adding to costs.
Read more on The Times of Islamabad
