ISLAMABAD: Pakistan’s trade deficit with nine neighbouring countries surged by 34.54 per cent in the first quarter of the current fiscal year (FY26), rising to $3.93 billion compared to $2.921bn recorded during the same months last year.

The increase in deficit is mainly the outcome of a decline in Pakistan’s overall exports to regional countries, except China, where Pakistan’s exports showed signs of recovery in the first three months of the current fiscal year.

A marginal increase was also recorded in exports to Sri Lanka, while shipments to Bangladesh and Afghanis­tan registered negative growth during the period under review, according to the latest data compiled by the State Bank of Pakistan.

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