ISLAMABAD: Despite being a main source of energy imports, Pakistan’s imports from the Middle East fell 18% year-on-year in March, while exports to the region posted a marginal 1% increase, reflecting the pressure of the ongoing war in the region on trade flows, according to data compiled by the State Bank of Pakistan (SBP).
In March, imports from the region declined to $1.186 billion from $1.441 billion a year earlier. Exports, meanwhile, rose to $291.23 million from $289.2 million.
The drop in imports was broad-based and was led by a 22% decline in inflows from the United Arab Emirates. Imports from Bahrain plunged 70%, while imports from Qatar, Kuwait and Jordan fell 26%, 29% and 26%, respectively.
Saudi Arabia was the only major country to post an increase, with imports inching up 2% during the month.
A mixed trend was also seen on the export side. Pakistan’s exports to Bahrain and Qatar fell 41% each in March, while shipments to Kuwait declined 31% and to Jordan dropped 11%.
However, exports to the United Arab Emirates and Saudi Arabia rose, keeping overall monthly export growth in positive territory. Exports to Saudi Arabia increased 6% in March, while exports to the United Arab Emirates rose 5%.
For the July-March period of FY2025-26, Pakistan’s exports to the Middle East declined 1% to $2.407 billion from $2.430 billion in the same period last year. Imports from the region fell 4% to $12.348 billion, compared to $12.895 billion a year earlier.
As a result, Pakistan’s overall trade with the Middle East contracted 5% to $9.940 billion in July-March FY2025-26, down from $10.465 billion in the corresponding period last year.
Country-wise, exports to Saudi Arabia fell 4% during the nine-month period to $529.98 million from $553.64 million a year earlier. Imports from Saudi Arabia, however, rose 5% to $2.973 billion from $2.828 billion.
Exports to the United Arab Emirates increased 1% in July-March to $1.628 billion from $1.611 billion last year. Imports from the United Arab Emirates rose 2% to $5.955 billion from $5.855 billion, despite the sharp fall in March.
Pakistan remains heavily dependent on energy imports from the United Arab Emirates and Saudi Arabia, which together account for around 90% of its imports from the Middle East. Other suppliers, including Qatar, Kuwait, Oman and Bahrain, remain secondary contributors.
The timing of the March decline is significant, as the escalation in conflict disrupted shipping routes, increased insurance costs and affected delivery schedules, slowing import flows into Pakistan.
The broader trend also shows pressure on Pakistan’s trade balance with the region. In FY2024-25, imports from the Middle East had risen 5.64% to $17.081 billion from $16.169 billion in the previous year. The trade deficit with the region widened 7.37% in FY2024-25 to $13.974 billion from $13.014 billion a year earlier.
