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Pakistan’s trade deficit with Gulf nations widens 28% in July – central bank

Pakistan’s trade deficit with Gulf nations widens 28% in July – central bank
A container ship is docked at the port of Jebel Ali, operated by the Dubai-based giant ports operator DP World, in the southern outskirts of the Gulf emirate of Dubai, on June 18, 2020. (AFP/File)
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Updated 10 September 2025

Pakistan’s trade deficit with Gulf nations widens 28% in July – central bank

Pakistan’s trade deficit with Gulf nations widens 28% in July – central bank
  • Exports to GCC dropped 12.5% to $277.3 millions as imports climbed 19% to $1.68 billion
  • Statistics reveal UAE was Pakistan’s top GCC oil supplier, with July imports at $816 million

KARACHI: Pakistan’s trade deficit with Gulf nations widened 28.4 percent to $1.4 billion in July, the first month of the current fiscal year, driven by rising imports from the oil-rich region, State Bank of Pakistan (SBP) data showed this week.

Last year in July, the gap with the six-member Gulf Cooperation Council (GCC) — Ƶ, the United Arab Emirates (UAE), Qatar, Kuwait, Oman and Bahrain — had stood at $1.09 billion.

This time around, exports to the bloc fell 12.5 percent year-on-year to $277.3 million, while imports rose 19 percent to $1.68 billion.

“It seems highly likely that Pakistan’s trade deficit is widening on the back of our increasing energy requirements that the country is importing from the Gulf region,” said Shankar Talreja, head of research at Karachi-based

Topline Securities Limited. “We have been importing our energy requirements and to some extent our chemical requirements from Gulf countries, while our exports to these nations are quite limited.”

Pakistan has continued to rely heavily on petroleum supplies from GCC states. Its imports from the bloc totaled $17.9 billion in FY2024-25, nearly matching earnings from the country’s textile exports. In return, Pakistan exported $3.79 billion worth of goods and services to the GCC

According to the data, the widening deficit reflects surging imports from the UAE, Pakistan’s largest oil supplier in the bloc.

July imports from the Emirates reached $816 million, while the FY25 bill stood at $8 billion. The UAE is also Pakistan’s biggest export market in the GCC, buying $2.12 billion worth of goods last year, SBP data showed.

Ƶ and Qatar were other key suppliers, exporting $3.8 billion and $3.5 billion worth of oil and gas to Pakistan respectively in FY25.

Pakistan’s cash-strapped government is struggling to rein in its external account by curbing imports and boosting exports, but the country’s overall trade deficit rose nine percent to $26 billion last year, according to the Pakistan Bureau of Statistics.

The country has been negotiating a free trade agreement (FTA) with the GCC to improve market access and signed preliminary accords in Riyadh in 2023.

“Pakistan has huge potential in IT services exports to the MENA [Middle East and North Africa] region,” said Sana Tawfik, head of research at Arif Habib Limited.

“The FTA will increase Pakistan’s competitiveness against its regional peers and help diversify its export base to traditional regions where it has been facing GSP+ and tariff issues,” she added, referring to the European and US markets.


Pakistan assumes chair of SCO’s permanent body on counterterrorism

Pakistan assumes chair of SCO’s permanent body on counterterrorism
Updated 15 sec ago

Pakistan assumes chair of SCO’s permanent body on counterterrorism

Pakistan assumes chair of SCO’s permanent body on counterterrorism
  • Regional Anti-Terrorist Structure is SCO’s counterterrorism arm which tackles separatism and extremism
  • In its capacity as chair of SCO RATs, Pakistan will foster regional cooperation against “terrorism,” says FO

ISLAMABAD: Pakistan has assumed the chair of the Regional Anti-Terrorist Structure (RATS) body of the Shanghai Cooperation Organization,(SCO) the foreign office announced on Wednesday, saying the role would allow Islamabad to foster regional cooperation against “terrorism.”

RATS SCO, founded in 2002 and headquartered in Tashkent, Uzbekistan, is a permanent organ of the SCO alliance which serves to promote cooperation among members states against “terrorism,” separatism, and extremism.

The foreign office said Islamabad assuming the counterterror body’s chair was a reflection of the confidence that SCO member states have in Pakistan’s efforts and contributions toward regional peace and security.

“In its capacity as the chair of SCO-RATS, Pakistan will work toward fostering regional cooperation against terrorism, in line with shared priorities, guided by the Shanghai Spirit of mutual trust, equality and shared responsibility,” the foreign office said.

It said as the body’s chair, Pakistan will host events on key domains such as cyber counterterrorism, information operations, border security, countering terrorist financing, and capacity-building to deepen collaboration.

Pakistan has frequently said it has lost 90,000 lives due to scores of militant attacks over the past couple of decades. Prime Minister Shehbaz Sharif said earlier this month Islamabad has suffered economic losses worth $152 billion due to “terrorism.”

“As a frontline state in combating terrorism, Pakistan continues to make unparalleled sacrifices to ensure safety and security not only of its own people but the region and beyond,” the statement said.

“Pakistan will continue to work with international and regional partners to advance collective efforts against terrorism, in line with the principles of the SCO, international law and the United Nations Charter.”

The development takes place as Pakistan battles twin insurgencies in its northwestern Khyber Pakhtunkhwa (KP) and southwestern Balochistan provinces. Islamabad blames the Afghan government for not taking action against the Tehreek-e-Taliban Pakistan (TTP) militants, alleging frequently that they operate from Afghanistan’s territory. Kabul denies the allegations.

Pakistan also accuses India of arming and funding militant groups in Balochistan, where separatist militants demand independence from the state. New Delhi rejects the allegations and accuses Islamabad of fueling insurgency in the part of disputed Kashmir it administers.


Pakistan announces lifting years-long ban on new gas connections

Pakistan announces lifting years-long ban on new gas connections
Updated 10 September 2025

Pakistan announces lifting years-long ban on new gas connections

Pakistan announces lifting years-long ban on new gas connections
  • Pakistan banned new connections for domestic use in 2021, citing depleting gas reserves in country
  • Pakistan says will issue new Re-Gasified Liquefied Natural Gas connections for domestic consumers

ISLAMABAD: Pakistan's government has decided to lift its years-long ban on new gas connections for domestic use, Petroleum Minister Ali Pervaiz Malik said on Wednesday, saying authorities would issue Re-Gasified Liquefied Natural Gas (RLNG) connections for domestic use.

Pakistan's government announced it was banning new gas connections in 2021, citing rapidly depleting gas reserves in the country. This forced users to switch from piped gas to other alternative sources of fuel for cooking and heating purposes, such as Liquefied Petroleum Gas, (LPG), which is more expensive.

Speaking to reporters at a news conference, Malik said the government was mindful of accidents such as explosions due to gas leaks and substandard cylinders, and of the difficulties people faced in having gas cylinders refilled.

"Due to all of these things and at the people's strong insistence, the prime minister and the government of Pakistan have decided that RLNG, which is imported gas, its new connections will be issued," Malik said.

The minister said that the Sui Northern Gas Pipelines Limited (SNGPL) and the Sui Southern Gas Company Limited (SSGC) will entertain people's applications for new gas connections after the cabinet issues a notification in this regard.

Malik said RLNG is more expensive than local gas but said it was still 30-35 percent cheaper than LPG.

"This means that inflation, regarding which the government of Shehbaz Sharif has controlled through untiring efforts, people will get some more support on it," the minister said.

Malik said the prime minister was mindful that RLNG is expensive compared to domestic gas, adding that the government would try to tackle Pakistan's energy crisis.

"For the discovery of local gas, we have completed one bid round," he said. "The second bid round will be completed soon. Companies from around the world, be it [from] our friend Turkiye, our friend China or our friend America, we will bring all these companies and try to utilize all the resources of on-shore and off-shore gas."

The development takes place after the Pakistan Petroleum Limited (PPL), one of the country's leading oil and gas exploration and production companies, said it has discovered "significant" oil and gas reserves in the Attock district of Punjab last week.

Earlier in February, Mari Energies, a Pakistani hydrocarbon exploration firm, discovered new oil and gas reserves in the northwestern Khyber Pakhtunkhwa (KP) province, with initial tests suggesting a flow of 12.96 million standard cubic feet per day (MMSCFD) of gas and around 20 barrel per day (bbl/d) of condensate.


Pakistan buys sorghum grain from US after floods, traders say

Pakistan buys sorghum grain from US after floods, traders say
Updated 10 September 2025

Pakistan buys sorghum grain from US after floods, traders say

Pakistan buys sorghum grain from US after floods, traders say
  • European traders estimate 240,000 to 300,000 metric tons of sorghum grain bought by Pakistani buyers
  • Traders say sorghum was bought as substitute to corn in poultry feed following recent heavy rains, flooding

HAMBURG: Buyers in Pakistan are believed to have bought about five shipments of the grain sorghum from the United States after serious floods damaged Pakistan’s crops, European traders said on Wednesday.

The precise tonnage was unclear but trader estimates were about 240,000 to 300,000 metric tons. Shipments were said to be between October and December.

Estimated prices were around $260 a ton cost and freight included (c&f) free out.

Traders said they believed the sorghum was purchased as a substitute to corn in poultry feed following recent heavy rains and flooding which damaged Pakistan’s grain crops.

The heavy suspected crop damage means more import demand from Pakistan for grains including wheat is seen as possible, traders said.


Pakistan says stands with Qatar after Israeli attack, denounces ‘barbarism’ in Palestine

Pakistan says stands with Qatar after Israeli attack, denounces ‘barbarism’ in Palestine
Updated 31 min 35 sec ago

Pakistan says stands with Qatar after Israeli attack, denounces ‘barbarism’ in Palestine

Pakistan says stands with Qatar after Israeli attack, denounces ‘barbarism’ in Palestine
  • Israel struck a civilian neighborhood in Doha in bid to kill Hamas political leaders
  • Pakistan requests UN Security Council meeting to discuss Israel’s attack on Qatar

ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday reaffirmed Pakistan’s support for Qatar after Israeli airstrikes hit a civilian neighborhood in Doha to target Hamas leaders, saying his government immediately condemned the attack.

Qatar has played a central role in efforts to mediate peace in Gaza, allowing Hamas’ political bureau to operate from its territory as part of negotiations.

Hamas confirmed after the strike that Israel had sought to kill its negotiators, in an attack that left at least six people dead, including a Qatari security guard.

“Yesterday, in Qatar, Israel once again launched an attack, a barbarity, against a sovereign country,” Sharif said during his cabinet meeting. “I believe that no matter how much it is condemned, it will not going to be enough.”

“I think that the blood that is being shed in Palestine, and the innocent children, young people, sisters, mothers and elders, who are being martyred, I believe not just in contemporary history but in the history of the world, there is no other example of such barbarity, cruelty and oppression,” he continued.

Sharif said Deputy Prime Minister Ishaq Dar immediately issued a statement after the attack, adding he himself spoke to the Emir of Qatar as well to assure him of Pakistan’s solidarity.

“He thanked the people of Pakistan, the government, and everyone for taking a stand in this difficult time,” he said while referring to the Qatari leader.

PAKISTAN REQUESTS SECURITY COUNCIL MEETING

Separately, Dar said Pakistan, Algeria and Somalia had requested an emergency meeting of the UN Security Council in light of Israel’s attack on Qatar.

“Pakistan expresses its complete solidarity and firm support with the Government and brotherly people of Qatar,” Dar wrote on social media platform X.

Israel’s attack takes place amid its military operations in Gaza. More than 64,600 people have been killed in the Palestinian territory since Israel launched its military campaign in October 2023.

Qatari officials denounced the strike as a “criminal attack” and a “flagrant violation” of international law that endangered the security of both Qatari citizens and foreign residents.

Israeli Prime Minister Benjamin Netanyahu said the assault was a “wholly independent Israeli operation” for which his government took “full responsibility.”


Pakistan, Bahrain agree to deepen security cooperation with MoUs, joint working group

Pakistan, Bahrain agree to deepen security cooperation with MoUs, joint working group
Updated 10 September 2025

Pakistan, Bahrain agree to deepen security cooperation with MoUs, joint working group

Pakistan, Bahrain agree to deepen security cooperation with MoUs, joint working group
  • Pakistan, Bahrain agree to sign MoUs on counternarcotics, extradition, police and battalion training
  • Naqvi praises ANF’s record $146 million drug seizure as both sides form joint working group on security

ISLAMABAD: Pakistan and Bahrain on Wednesday agreed to boost security cooperation by signing MoUs in counternarcotics, extradition, mutual legal assistance and police training, and by forming a joint working group on counterterrorism, border security, coast guard operations and immigration.

The agreements were announced after delegation-level talks between Pakistan’s Interior Minister Mohsin Naqvi and his Bahraini counterpart, Lt. Gen. Rashid bin Abdullah Al Khalifa, in Islamabad. 

“The establishment of the joint working group and signing of MoUs will promote cooperation between the two countries,” the Bahraini interior minister said, according to an official statement from Naqvi’s office. 

Naqvi said counternarcotics cooperation was “a matter of the future of our coming generations,” praising Pakistan’s Anti-Narcotics Force for record seizures despite limited resources.

“ANF has made the largest recovery in history of $146 million,” he added.

He welcomed Bahrain’s appointment of a drug liaison officer in Islamabad, calling it an important step for joint efforts.

More than 120,000 Pakistanis live in Bahrain, contributing to the Gulf state’s economy and serving as a bridge in bilateral relations.

Pakistan and Bahrain established diplomatic ties in 1971 and have since maintained close political, trade and defense links through regular high-level visits and security cooperation.