Abdul Ghani

Pakistan’s imports from China recorded a sharp increase during the first two months of the current fiscal year, while exports to the country posted only modest growth, widening the bilateral trade imbalance, according to the Trade Development Authority of Pakistan (TDAP).

The official data show that Pakistan’s imports from China reached $2.99 billion in July–August FY2025-26, up 33 percent from $2.25 billion in the same period of FY2024-25. In August 2025 alone, the imports stood at $1.37 billion, reflecting a year-on-year rise of 28 percent compared with $1.07 billion in August 2024.

China maintained its position as Pakistan’s largest import source, well ahead of the United Arab Emirates, Indonesia, and Saudi Arabia. Key imports from China included engineering goods, iron and steel products, chemicals, consumer electronics, and vehicles.

Within these categories, the imports of telephone sets, including smartphones (HS 8517) recorded substantial increases. They rose 70 percent in July–August FY2025-26 to $326 million, compared with $192 million in the same months last year. In August alone, mobile phone imports reached $170 million, compared with $105 million in August 2024, showing a year-on-year increase of 62 percent.

Similarly, the imports of motor cars and other vehicles (HS 8703) climbed 118 percent to $310 million during the two-month period from $142 million a year earlier. In August 2025, vehicle imports totaled $158 million, compared with $90 million in August 2024.

Other significant import categories from China included machinery, electrical equipment, steel sheets, polymers, and industrial raw materials, underscoring Pakistan’s continued dependence on Chinese supplies for both consumer goods and industrial inputs.

On the export side, Pakistan’s shipments to China recorded only a modest increase. Exports in July–August FY2025-26 reached $331 million, compared with $309 million in the corresponding period of FY2024-25, showing a growth of 7 percent. In August 2025, Pakistan’s exports to China were valued at $158 million, slightly above $155 million in August 2024.

Main Pakistani exports to China during the period included rice, textiles, leather products, copper, and other raw materials. While these categories posted some gains, the scale of increase remained limited compared with the surge in imports.

The figures highlight a growing bilateral trade imbalance, as the two-way trade was dominated by rising Chinese exports to Pakistan. With imports at nearly $3 billion against exports of just $331 million in the first two months of FY2025-26, the trade deficit with China alone exceeded $2.65 billion.

Overall, Pakistan’s total imports during July–August FY2025-26 stood at $11.1 billion, up from $9.73 billion in the same period last year, while exports were recorded at $5.1 billion. The country’s overall trade deficit widened to $6.01 billion in the two months, compared with $4.66 billion a year earlier.

Credit: INP-WealthPk