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Pakistan is importing more from India, exporting less to China
Despite a breakdown in the relationship following the recent military standoff, Pakistan has increased imports of Indian goods this year.
Pakistan's imports from India climbed to $220.58 million in FY25, a rise from $206.89 million the previous year, reported Dawn, citing data from the State Bank of Pakistan.
In FY24, imports from India grew by 6.62 per cent to $206.89 million, up from $190.04 million the year before.
Meanwhile, exports to India stayed flat at $1.43 million in FY25. In FY24, exports to India jumped to $3.669 million from just $0.329 million the previous year.
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It shows that while trade between the two neighbours increased during the current financial year, the deficit also grew for Pakistan, as imports outvalued exports by over $200 million.
Pakistan's trade deficit swells
The trade deficit with nine neighbouring countries ballooned by 29.42 per cent in FY25, reaching $12.297 billion compared to $9.502 billion the year prior.
In FY24, the deficit was $9.506 billion, a 49 per cent increase from $6.382 billion the previous year.
Despite some export growth, the overall trade gap with regional partners widened, largely due to higher imports from China, India, and Bangladesh during this period.
Exports to Afghanistan, Bangladesh increased
Pakistan's exports to Afghanistan, Bangladesh, and Sri Lanka saw strong growth in July-June FY25, but exports to other countries, particularly China, continued to slide.
Total exports to nine countries—Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan, and the Maldives—edged up by 1.49 per cent to $4.401 billion in July-June FY25, from $4.336 billion the previous year. However, imports surged by 20.66 per cent to $16.698 billion in FY25, compared to $13.838 billion in the prior fiscal year.
Trade gap with China widened
Breaking it down, imports from China rose by 20.79 per cent to $16.312 billion in FY25, up from $13.504 billion the previous year. In FY24, imports from China hit $13.506 billion, a 39.78 per cent increase from $9.662 billion the year before. China dominates the region's imports, with India and Bangladesh contributing smaller shares.
On the export side, Pakistan's shipments to China fell by 8.6 per cent to $2.476 billion in FY25, down from $2.709 billion in the same period of the previous fiscal year.
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