Trade with Middle East hit by tensions

ISLAMABAD: Pakistan’s imports from the Middle East fell sharply by 18 per cent in March, while exports posted a modest increase of 1pc, reflecting the strain of the ongoing conflict on the country’s trade ties with the region.

The decline in imports was broad-based, led by a contraction from the United Arab Emirates (UAE), followed by Qatar, Kuwait, Bahrain and Jordan. In contrast, imports from Saudi Arabia posted a marginal increase during the month.

A similar pattern was observed on the export side. Pakistan’s shipments to Qatar, Kuwait, Bahrain and Jordan declined in March, while exports to the UAE and Saudi Arabia registered an uptick, keeping the overall increase at 1pc, according to data compiled by the State Bank of Pakistan.

This suggests that Pakistan’s import flows remain highly sensitive to geopolitical developments, particularly in key energy corridors.

Imports plunge 18pc, uptick in exports in March

Pakistan is heavily reliant on energy imports, particularly from the UAE and Saudi Arabia, which together account for around 90pc of the total. Other countries, including Qatar, Kuwait, Oman and Bahrain, remain secondary contributors despite their export capacity.

Exports to the Middle East declined by 1pc to $2.407bn in July-March FY26, down from $2.430bn in the same period last year. However, in March alone, exports edged up 1pc year-on-year to $291.23 million from $289.2m.

Meanwhile, imports from the region fell by 4pc to $12.348bn in July-March FY26, compared to $12.895bn a year earlier. In March, imports dropped 18pc to $1.186bn from $1.441bn on a year-on-year basis.

In FY25, imports rose 5.64pc to $17.081bn from $16.169bn in the preceding year.

Overall, Pakistan’s trade with the Middle East contracted by 5pc to $9.940bn in July-March FY26, compared to $10.465bn in the corresponding period last year. In FY25, the trade deficit with the region widened by 7.37pc to $13.974bn from $13.014bn a year earlier.

Exports to Saudi Arabia fell 4pc to $529.98m in July-March FY26 from $553.64m in the same period last year. However, exports to the kingdom rose 6pc year-on-year in March.

Imports from Saudi Arabia increased by 5pc to $2.973bn in July-March FY26, compared to $2.828bn a year earlier. In March, imports from the kingdom inched up 2pc year-on-year.

Exports to the UAE posted a slight increase of 1pc to $1.628bn in July-March FY26, up from $1.611bn last year. In March, exports to the UAE rose 5pc year-on-year.

Imports from the UAE increased by 2pc to $5.955bn in July-March FY26, compared to $5.855bn in the same period last year. However, in March, imports from the UAE declined sharply by 22pc year-on-year.

Pakistan’s exports to Bahrain and Qatar dropped 41pc each in March, while shipments to Kuwait fell 31pc and to Jordan 11pc on a year-on-year basis.

Similarly, imports from Bahrain plunged 70pc, while those from Qatar, Kuwait and Jordan declined by 26pc, 29pc and 26pc, respectively, during the month under review.

The timing of the decline is significant. As the conflict intensified, shipping routes, insurance costs and delivery schedules were disrupted, contributing to reduced inflows in March.

Published in Dawn, April 22nd, 2026

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