Pakistan's trade deficit with seven Gulf partner countries narrowed 26.35% to $2.85 billion in July-September 2026, according to Dawn News English, driven by a 20.02% decline in imports and a 10.96% rise in exports. The figures cover the first quarter of the 2026-27 fiscal year and point to an improving trade balance with a region that is central to Pakistan's energy imports, remittances and export markets.

Where the shift came from

Import payments to Kuwait and Qatar recorded the steepest declines, while imports from Oman surged, according to the report. The pattern suggests the overall narrowing was led by lower spending on imports from the largest Gulf suppliers rather than a uniform fall across all partners, even as Pakistani exports to the region grew by nearly 11%.

Why it matters

The Gulf states are among Pakistan's most important economic partners, supplying energy, hosting large numbers of Pakistani workers whose remittances support household incomes and foreign exchange reserves, and buying Pakistani goods. A narrower deficit eases pressure on the external account, although a single quarter's improvement does not by itself show a lasting turnaround, and the balance will depend on energy prices, import demand and export performance in the months ahead. Economists will watch whether the improvement holds through the December quarter, when energy import bills typically rise and export orders face their usual seasonal test.