Pakistan's trade deficit with nine neighbouring countries widened by 26.62 percent to $4.97 billion in the first quarter of the 2026-27 fiscal year, Dawn reported on Tuesday, citing State Bank of Pakistan data. The gap stood at $3.93 billion in the same quarter a year earlier.

Source: Dawn via State Bank of Pakistan

Yaani $4.97 billion means roughly 497 crore US dollars of more buying from neighbours than selling to them in just three months, from July to September 2026.

Exports to the nine countries — Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan and the Maldives — fell 6.72 percent to $944.24 million, while imports from them rose 19.79 percent to $5.92 billion, the report said.

China accounts for most of the wider gap

China was by far the biggest factor. Imports from China grew 19.76 percent to $5.82 billion, while Pakistan's exports to China rose 17.95 percent to $663.57 million. Dawn's breakdown attributed about 82.18 percent of the increase in the regional deficit to the wider bilateral gap with China, which grew by $858.808 million.

Trade with Afghanistan remained largely frozen. Exports to Afghanistan plunged 88.34 percent to $18.86 million and imports fell 94.40 percent to $0.25 million, with the report noting that trade with Afghanistan has remained suspended since October 10, 2025.

Pakistan recorded no exports to India in the quarter, while imports from India rose 68.90 percent to $61.74 million. Exports to Bangladesh fell 2.96 percent to $174.77 million, and imports from Bangladesh dropped 36.11 percent to $13.88 million. Shipments to Sri Lanka also declined, the report said.

The figures underline Pakistan's heavy dependence on Chinese imports and the cost of closed or strained trade routes with Afghanistan and India, even as its exports to nearby markets shrink.