Pakistan, June 25 -- Pakistan's trade deficit with its nine neighboring countries surged to $1.117 billion during the first 11 months of the 2025 fiscal year. The rise is mainly due to a sharp increase in imports from China, India, and Bangladesh, while exports to these countries fell. This imbalance has caused concern among policymakers and economists alike.

Although exports to Afghanistan, Bangladesh, and Sri Lanka showed notable growth due to changing political conditions, the overall deficit widened because imports from China, India, and Bangladesh increased significantly. China remains Pakistan's largest import source in the region, but exports to China dropped by over 11 percent.

Trade with India and Bangladesh also showed similar...