Trade With Central Asia Shrinks Amid Soaring Imports

Pakistan’s trade deficit with Central Asian states has widened alarmingly, as exports dipped while imports surged during the fiscal year 2024-25, The Caspian Post informs via PakTribune.

According to official data, exports to the five Central Asian Republics - Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan - dropped by 32%, amounting to $197 million, down from $289 million the previous year. In contrast, imports rose sharply by over 400%, reaching $245 million, up from just $60 million.

The most notable drop was seen in exports to Kazakhstan, falling 46.7%, while shipments to Turkmenistan and Uzbekistan also declined. However, exports to Tajikistan doubled, offering a rare positive.

Trade experts cite inadequate logistics, lack of banking channels, and inconsistent policy implementation as the primary reasons behind Pakistan’s failure to tap into the potential of regional trade. Despite its strategic location and repeated commitments under various transit agreements, Pakistan’s economic engagement with Central Asia remains minimal and imbalanced.

Calls for streamlining customs procedures, easing visa regimes, and developing road and rail links continue to mount as the country seeks to reduce its reliance on distant markets.