During the first 11 months of FY23, Pakistan’s exports to the Middle East witnessed a decline of 12.28% compared to the same period last year, primarily due to a significant drop in exports to the United Arab Emirates (UAE).
Data compiled by the State Bank of Pakistan revealed that while exports to Saudi Arabia increased, other countries in the region experienced a decline.
The UAE, which constitutes nearly 62% of Pakistan’s total exports to the Middle East, saw a decline of 20.46% to $1.341 billion in 11MFY23 from $2.425 billion in FY22. Out of the seven UAE states, the majority of exports were destined for Dubai, amounting to $1.209 billion during 11MFY23, showing a decline of 4.95% compared to the corresponding period last year.
Pakistan’s key export products to the UAE include rice, bovine carcasses and half carcasses, men’s/boys’ cotton ensembles, guavas, and mangoes. The top sectoral exports to the UAE comprise cereals, articles of apparel and clothing, meat, and edible offal.
Saudi Arabia, the second-largest market in the region for Pakistan, witnessed a 21.41% increase in exports to $457.113 million in 11MFY23 compared to the preceding fiscal year. However, exports to Saudi Arabia have remained stagnant at around $500 million over the last decade due to limited market access compared to the UAE.
Top exports to Saudi Arabia include rice (semi- or wholly milled), bovine carcasses and half carcasses, tents, and textile materials.
Pakistan’s exports to other Middle Eastern countries also experienced declines. Exports to Qatar dipped 13.77% to $152.880 million, exports to Kuwait fell by 7.92% to $117.353 million, and exports to Bahrain declined by 6.06% to $59.275 million in 11MFY23.
Despite the overall decline, Pakistan’s exports to Qatar during 11MFY23 were boosted by the export of footballs as Pakistan served as the official football supplier for the FIFA World Cup 2022 held in Doha, Qatar.