Pakistan's Regional Trade Deficit Widens 26.62% to $4.97 Billion in First Quarter of FY27

State Bank of Pakistan data reported by Dawn shows exports to nine neighbouring countries fell 6.72% to $944.24 million in July–September while imports rose 19.79% to $5.92 billion — with China accounting for most of the gap, exports to Afghanistan down 88.34%, and no exports at all recorded to India.

Awaaz Punjab Investigations Desk26 October 20264 min readRead in all 3 languages

Pakistan's trade deficit with nine neighbouring nations widened by 26.62 percent to $4.97 billion during the first quarter of the 2026-27 fiscal year (July–September), up from $3.93 billion in the same period a year earlier, according to State Bank of Pakistan (SBP) data reported by Dawn on October 27.

Source: Dawn, reporting State Bank of Pakistan data, via Beflaz, Oct 27

$4.97 billionPakistan's trade deficit with nine regional countries in Q1 FY27, up 26.62% year on year — SBP data via Dawn (yaani about $497 crore)

$944.24 millionExports to the nine countries in July–September, down 6.72% from $1.01 billion

$5.92 billionImports from the nine countries in the quarter, up 19.79% from $4.94 billion

In simple terms (yaani): a $4.97 billion deficit means Pakistan bought about $497 crore worth more from these nine neighbours than it sold to them in just three months. The nine countries are Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan and the Maldives, Dawn reported.

China accounts for most of the gap

Imports from China grew 19.76 percent to $5.82 billion, while Pakistan's exports to China increased 17.95 percent to $663.57 million, Dawn reported from the SBP data. China accounted for roughly 82.18 percent of the increase in the regional deficit, with its bilateral trade gap with Pakistan widening by about $858.8 million in the quarter.

Source: Dawn, reporting State Bank of Pakistan data, via Beflaz, Oct 27

Afghanistan trade collapse and the India figures

Exports to Afghanistan plummeted 88.34 percent to $18.86 million and imports from Afghanistan fell 94.40 percent to $0.25 million, Dawn reported, noting that trade with Afghanistan has remained suspended since October 10, 2025. Imports from India grew 68.90 percent to $61.74 million, whereas Pakistan recorded no exports to India during the quarter. Exports to Bangladesh fell 2.96 percent to $174.77 million and imports from Bangladesh dropped 36.11 percent to $13.88 million, while shipments to Sri Lanka declined and exports to Nepal grew in percentage terms despite remaining negligible in dollar value, Dawn reported.

Source: Dawn, reporting State Bank of Pakistan data, via Beflaz, Oct 27

The regional figures sit inside a wider external gap: Pakistan's overall merchandise trade deficit for the same July–September quarter was $10.8 billion, up 15.13 percent year on year, according to Pakistan Bureau of Statistics figures cited by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), whose president warned that the import bill threatens foreign-exchange reserves.

Source: FPCCI statement citing Pakistan Bureau of Statistics, via Token Times, Oct 5

Sources

Dawn, Oct 27 2026, reporting State Bank of Pakistan data — regional trade deficit with nine neighbours widens 26.62% to $4.97bn in Q1 FY27; exports $944.24m, imports $5.92bn, China bulk, Afghanistan exports -88.34%, no exports to India — https://beflaz.com/news/2026-10-27-regional-trade-deficit-widens-sharply-b05387.html

State Bank of Pakistan trade data for Q1 FY27 (primary data source, as reported by Dawn)

FPCCI statement citing Pakistan Bureau of Statistics, Oct 5 2026 — overall Q1 FY27 merchandise trade deficit $10.8bn, up 15.13% — https://www.tokenstimes.com/en/article/2a0495a2-0d79-4a74-8e20-6941a25eb921