Pakistan’s trade deficit with six Gulf countries fell by 46 percent in July after a big drop in imports.
The trade gap with Saudi Arabia, the UAE, Kuwait, Bahrain, Qatar and Oman fell to $750.5 million in July, compared with around $1.4 billion in the same month last year, according to central bank data.
Imports from these six Gulf markets fell 38.1 percent to $1.04 billion. At the same time, Pakistan’s exports to the region increased 4.7 percent to $290.3 million.
Pakistan depends heavily on Gulf countries for crude oil, petroleum products and LNG. This makes its import bill sensitive to disruptions in the region, particularly around the Strait of Hormuz.
Pakistan did not import any high-speed diesel in July. Also, domestic refineries have increased their output.
Qatar also saw a sharp drop in trade with Pakistan. Research shows Pakistan’s imports from Qatar fell 78 percent year-on-year to $61.5 million in July, while exports to Qatar declined 16 percent to $7.42 million.
Imports from Oman increased 58 percent to $161 million, while Pakistan’s exports to Oman fell 11.3 percent to $20.5 million.
Overall, Pakistan imported $1.28 billion worth of petroleum products, including crude oil, LNG and LPG, in July.
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