World

Regional trade deficit widens sharply

ISLAMABAD: Pakistan’s trade deficit with nine neighbouring countries widened by 26.62 per cent to $4.97 billion during the first quarter of 2026-27 compared to $3.93bn in the corresponding period last year. The widening gap reflects a contraction in Pakistan’s exports to regional markets, largely due to reduced shipments to Afghanistan and Bangladesh. Trade with Afghanistan, including exports, has remained suspended since Oct 10, 2025, further weighing on overall export performance. Imports from