# Pakistan's trade deficit with neighbours jumps 27% to $4.97bn in July-September as China imports rise

Source: Searchable (https://searchable.pk/news/economy/pakistans-trade-deficit-with-neighbours-jumps-27percent-to-dollar497bn-in-july)
Type: News article
Author: Searchable Editorial
Published: 27 Oct 2026
Updated: 27 Oct 2026
Retrieved: 27 Oct 2026

> Imports from the nine regional countries rose almost 20% while exports to them fell. China alone accounts for more than four-fifths of the widening, and trade with Afghanistan has all but stopped.

Pakistan's **trade deficit with its nine regional neighbours widened 26.62% to $4.97 billion** in July-September 2026, the first quarter of fiscal year 2026-27, from $3.93bn a year earlier. That is about **Rs 1.38 trillion** at today's interbank rate of Rs 276.81 to the dollar. The figures are State Bank of Pakistan data [reported by Dawn](https://www.dawn.com/news/2040061/regional-trade-deficit-widens-sharply) on Tuesday.

## The quarter in numbers

| | Jul-Sep 2026 | Jul-Sep 2025 | Change |
|---|---|---|---|
| Exports to the region | $944.24m | $1.01bn | down 6.72% |
| Imports from the region | $5.92bn | $4.94bn | up 19.79% |
| Deficit | $4.97bn | $3.93bn | up 26.62% |

## China drives almost all of it

Imports from China rose 19.76% to **$5.82bn** from $4.85bn. Exports to China also grew, by 17.95% to $663.57m, but from a far smaller base. The bilateral gap with China widened by about $859m, or roughly Rs 238 billion, which is about 82% of the total rise in the regional deficit.

## Country by country

- **India:** imports up 68.9% to $61.74m from $36.55m; no exports were recorded.
- **Afghanistan:** exports collapsed 88.34% to $18.86m from $161.76m, and imports fell 94.4% to $0.25m. Trade has been suspended since 10 October 2025.
- **Bangladesh:** exports slipped 2.96% to $174.77m; imports fell 36.11% to $13.88m.
- **Sri Lanka:** exports declined. Nepal grew in percentage terms from a negligible base. Dawn gave no separate figures for Iran, Bhutan or the Maldives.

## What it means for you

A wider import bill means more demand for dollars, which puts pressure on the rupee and on the State Bank's reserves. The near-total loss of the Afghan market, which took $161.76m of Pakistani goods in the same quarter last year, falls hardest on traders who shipped through the Torkham and Chaman crossings.

Track the exchange rate on our [dollar to rupee page](/data/usd-pkr) or convert any amount with the [currency converter](/tools/finance/currency-converter). For the full picture, see our earlier report on the [Gulf trade deficit falling 26%](/news/business/pakistans-trade-deficit-with-gulf-countries-falls-26percent-to-dollar285bn-in).

## Frequently asked questions

**What is Pakistan's trade deficit with regional countries in 2026-27?**

$4.97 billion in July-September 2026, up 26.62% from $3.93bn a year earlier, according to State Bank data reported by Dawn.

## Sources

- Regional trade deficit widens sharply (Dawn): https://www.dawn.com/news/2040061/regional-trade-deficit-widens-sharply

How to cite: "Pakistan's trade deficit with neighbours jumps 27% to $4.97bn in July-September as China imports rise", Searchable, 27 Oct 2026, https://searchable.pk/news/economy/pakistans-trade-deficit-with-neighbours-jumps-27percent-to-dollar497bn-in-july