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

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 on Tuesday.

The quarter in numbers

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 or convert any amount with the currency converter. For the full picture, see our earlier report on the Gulf trade deficit falling 26%.