Pakistan-Saudi Arabia trade deficit falls 18.37% in two months

Pakistan’s trade deficit with Saudi Arabia declined by 18.37% during the first two months of fiscal year 2026-27, as imports from the kingdom fell at a faster pace than Pakistani exports.

According to sources, Pakistan’s trade deficit with Saudi Arabia stood at $471 million during July and August 2026, compared with $577 million during the same period last year.

The figures show that the reduction in the trade gap was mainly driven by a significant decline in imports from Saudi Arabia. Pakistani exports to the kingdom also decreased during the period, although the decline was comparatively smaller.

Pakistan’s exports to Saudi Arabia amounted to $98 million during July and August 2026, down from $102 million in the corresponding period of the previous year. This represents a 3.92% decline in exports.

Meanwhile, imports from Saudi Arabia fell substantially during the first two months of the current fiscal year. Pakistan imported goods worth $569 million from the kingdom in July and August 2026, compared with $679 million during the same period last year.

The data indicates that Saudi imports declined by around 16.2% year-on-year, helping Pakistan narrow its bilateral trade deficit despite the drop in exports.

The latest figures highlight the continued imbalance in Pakistan’s trade with Saudi Arabia, with imports remaining significantly higher than exports. However, the sharper reduction in imports has resulted in a lower trade gap during the opening months of FY27.