# Pakistan's trade deficit with Gulf countries falls 26% to $2.85bn in July-September as imports drop 20%

Source: Searchable (https://searchable.pk/news/business/pakistans-trade-deficit-with-gulf-countries-falls-26percent-to-dollar285bn-in)
Type: News article
Author: Searchable Editorial
Published: 25 Oct 2026
Updated: 25 Oct 2026
Retrieved: 25 Oct 2026

> Exports to the UAE rose 16% while oil and LNG bills from Qatar and Kuwait collapsed. The country-by-country picture for the first quarter of FY27.

Pakistan's trade deficit with its Gulf partners narrowed by **26.35% to $2.85 billion** in the first quarter of FY2026-27 (July to September), down from $3.87 billion a year earlier, according to State Bank of Pakistan data compiled by [Dawn](https://www.dawn.com/news/2039577/pakistans-trade-gap-with-gulf-partners-narrows). Lower imports did most of the work; exports also rose.

## The headline numbers (July-September)

| | Q1 FY27 | Q1 FY26 | Change |
|---|---|---|---|
| Exports to the region | $864.88m | $779.43m | +10.96% |
| Imports from the region | $3.717bn | $4.648bn | -20.02% |
| Trade deficit (seven Gulf partners) | $2.85bn | $3.87bn | -26.35% |

In rupees, the quarter's exports are worth about **Rs 23,940 crore** at today's interbank rate of Rs 276.82 to the dollar ([dollar rate](/data/usd-pkr)).

## Country by country

| Country | Exports | Imports |
|---|---|---|
| UAE | +16.35% | -6.15% |
| Saudi Arabia | +4.92% | -18.52% |
| Qatar | -22.79% | -72.51% |
| Kuwait | -2.24% | -97.46% |
| Bahrain | -23.07% | -17.31% |
| Jordan | +4.70% | -29.27% |
| Oman | +10.73% | +97.40% |

The UAE took about **66%** of Pakistan's exports to these seven countries and Saudi Arabia about **19%**. Qatar and Kuwait together account for **$947.9 million** of the fall in import payments; both are big suppliers of LNG and oil products, and the Strait of Hormuz attacks have disrupted shipping from the Gulf this year.

## What it means

A smaller deficit with the Gulf eases pressure on the rupee and on reserves, which Finance Minister Muhammad Aurangzeb said on Saturday now cover more than three months of imports. But part of the fall is fuel that did not arrive, not fuel that got cheaper, and that shows up as supply worries at home, including the LPG shortage. For the full year FY26, exports to the region fell just over 2% to $3.09bn and imports 4% to $16.41bn.

For businesses invoicing in dirhams or riyals, the [dirham](/data/aed-pkr) and [riyal](/data/sar-pkr) pages carry today's rates, and the [currency converter](/tools/finance/currency-converter) does the sums. Remittance senders can check the same pages before transferring.

## Frequently asked questions

**What is Pakistan's trade deficit with the Gulf in Q1 FY27?**

$2.85 billion in July to September 2026, down 26.35% from $3.87 billion a year earlier, per SBP data reported by Dawn.

## Sources

- Pakistan's trade gap with Gulf partners narrows (Dawn): https://www.dawn.com/news/2039577/pakistans-trade-gap-with-gulf-partners-narrows
- FinMin seeks to allay fuel shortage fears (The Express Tribune): https://tribune.com.pk/story/2636769/finmin-seeks-to-allay-fuel-shortage-fears

How to cite: "Pakistan's trade deficit with Gulf countries falls 26% to $2.85bn in July-September as imports drop 20%", Searchable, 25 Oct 2026, https://searchable.pk/news/business/pakistans-trade-deficit-with-gulf-countries-falls-26percent-to-dollar285bn-in