Lahore: A significant decline in Pakistan’s trade deficit has been recorded in the first two months of the fiscal year 2026-27 in trade between Pakistan and Saudi Arabia.
Pakistan’s trade deficit with Saudi Arabia in July and August 2026 was $471 million. In the same period of the previous fiscal year, the deficit was $577 million. Thus, the trade deficit decreased by 18.37 percent during the two months.
According to the available data, Pakistan’s exports to Saudi Arabia also declined marginally. In the first two months of the current fiscal year, exports were $98 million, while in the same period last year, this volume was $102 million.
Pakistani exports recorded a decline of 3.92 percent during this period. On the other hand, there was a relatively high decline in imports from Saudi Arabia, which played an important role in limiting the overall trade deficit.
Pakistan’s imports from Saudi Arabia in July and August were $569 million. In the same period last year, imports were $679 million. Thus, the import bill decreased by 16.2 percent.
Trade data shows that the main reason for the reduction in the deficit is the decrease in imports from Saudi Arabia, while exports could not increase. Increasing exports to the Saudi market is still an important trade goal for Pakistan.
The competitiveness of the export sector, access to new markets and increasing the presence of Pakistani products in the Saudi market will be important factors for improving trade between the two countries.
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