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Pakistan’s trade deficit with neighbours surges to nearly $16 billion as exports to Afghanistan plunge

The decline in exports was largely attributed to reduced shipments to Afghanistan, Bangladesh and Sri Lanka.

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Pakistan’s trade deficit with nine neighbouring countries widened by 30 percent in the 2025–26 fiscal year, reaching $15.93 billion, driven by declining exports to regional markets and rising imports, particularly from China.

According to the latest data released by the State Bank of Pakistan, the country’s trade gap with Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan and the Maldives increased from $12.26 billion in the previous fiscal year to $15.93 billion.

Pakistan’s total exports to the nine neighbouring countries fell by 11 percent to $3.95 billion, while imports from the region rose by 19.1 percent to $19.89 billion, highlighting a growing trade imbalance.

The decline in exports was largely attributed to reduced shipments to Afghanistan, Bangladesh and Sri Lanka. Trade with Afghanistan, including exports, has remained suspended since October 10, 2025, significantly affecting Pakistan’s regional export performance.

Exports to Afghanistan dropped by 68.9 percent to $243.69 million, down from $783.95 million in the previous fiscal year. Imports from Afghanistan also declined sharply by 74.9 percent, falling to $6.5 million.

China remained Pakistan’s largest regional trading partner. Exports to China increased by 8.4 percent to $2.68 billion, accounting for 68 percent of Pakistan’s exports to neighbouring countries. However, imports from China climbed 19.8 percent to $19.54 billion, representing 98 percent of Pakistan’s regional imports.

Trade with India remained limited despite a percentage increase in exports. Pakistan’s exports to India rose to $2.93 million, while imports from India declined 7.6 percent to $168.73 million.

Exports to Bangladesh fell 9.3 percent to $715.59 million, while exports to Sri Lanka declined 22.8 percent to $293.38 million during the fiscal year.

The latest figures underscore Pakistan’s growing dependence on imports, particularly from China, while declining exports to regional markets continue to widen the country’s trade deficit.

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Imam Abu Hanifa exhibition to draw exhibitors from more than 20 countries

Representatives from more than 20 countries are expected to attend, including Russia, India, Türkiye and Japan.

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The fifth Imam Abu Hanifa National and International Exhibition will be held in Kabul from October 7 to 13, the Afghanistan Chamber of Commerce and Investment (ACCI) says.

Representatives from more than 20 countries are expected to attend, including Russia, India, Türkiye and Japan.

Ahmad Shakil Hazim, ACCI’s Deputy for Policy and Technical Affairs, said the exhibition would give traders, investors and producers an opportunity to showcase their products and expand business ties with international markets.

Economic experts say international trade exhibitions can strengthen commercial relations between Afghan and foreign businesses and help attract investment.

The fourth edition of the exhibition was held in Kabul last year, with officials saying trade agreements and contracts worth more than $700 million were signed between Afghan and foreign traders on the sidelines of the event.

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Afghanistan, Russia discuss expanding trade cooperation

The Ministry of Industry and Commerce said the two sides described the meeting as productive and stressed the need to further expand economic and trade relations between Afghanistan and Russia.

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Afghanistan and Russia have discussed ways to expand economic and trade cooperation, including increasing exports of Afghan products to Russia and importing Russian machinery and technology into Afghanistan.

Afghanistan’s Minister of Industry and Commerce Nooruddin Azizi met with Nikita Kornienko, Minister of International and Interregional Cooperation of Russia’s Chelyabinsk Region, and his delegation, according to the ministry.

The talks focused on strengthening economic ties, improving coordination between traders from both sides, expanding exports of Afghan goods to Chelyabinsk, importing Russian machinery and modern technologies, and enhancing banking cooperation.

Azizi highlighted the need to increase Afghan exports to Russia and said Afghanistan was ready to establish a distribution centre for Russian goods in Afghanistan and a market for Afghan products in Chelyabinsk.

Kornienko welcomed greater trade cooperation with Afghanistan and invited a delegation from the Islamic Emirate, including private-sector representatives, to visit Chelyabinsk to help strengthen coordination between traders from both sides.

The Ministry of Industry and Commerce said the two sides described the meeting as productive and stressed the need to further expand economic and trade relations between Afghanistan and Russia.

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Afghanistan and Uzbekistan sign 20 trade MoUs worth $267 million

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Afghanistan’s Ministry of Industry and Commerce says 20 trade memorandums of understanding (MoUs) worth $267 million have been signed following business meetings between Afghan traders and private-sector representatives and officials from Uzbekistan’s Kashkadarya province.

The agreements were signed on the sidelines of a business networking conference between Afghan private-sector representatives and Kashkadarya in Kabul. Officials from Afghanistan’s Ministry of Industry and Commerce, representatives of Kashkadarya province, Uzbekistan’s ambassador to Kabul, and private-sector representatives from both countries attended the conference.

Ahmadullah Zahid, Deputy Minister of Industry and Commerce, said economic relations and trade between Afghanistan and Uzbekistan have increased following visits by delegations from both sides.

He stressed the need to simplify trade and transit procedures and remove existing obstacles. He also said Afghanistan is ready to discuss the transit of its export goods through Uzbekistan.

Shahret Muradov, Deputy Governor of Kashkadarya, said the province is ready to expand trade and industrial cooperation with Afghanistan and host Afghan delegations and traders.

The agreements cover sectors including food products, clothing, construction, livestock, electronic equipment, and furniture.

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