Pakistan and Egypt report divergent trade deficit trends

Pakistan’s trade deficit with six Gulf nations—Saudi Arabia, the United Arab Emirates, Kuwait, Bahrain, Qatar, and Oman—dropped by 46 percent in July. The deficit fell to $750.5 million, down from approximately $1.4 billion in the same month last year. This reduction was primarily driven by a 38.1 percent year-on-year decline in imports, which fell to $1.04 billion. Notably, imports from Qatar decreased by 78 percent. Conversely, Pakistan’s exports to these markets rose by 4.7 percent, reaching $290.3 million.

In Egypt, the trade deficit widened by 58.5 percent year-on-year to $7.5 billion in June. While Egyptian exports grew by 37.4 percent to $5 billion—led by petroleum products, garments, and food items—imports surged 49.4 percent to $12.4 billion. This import spike was largely fueled by a 141 percent increase in crude oil purchases, alongside higher imports of plastics, passenger cars, and raw materials for iron and steel.