ISLAMABAD: The ongoing Iran-US conflict has not only shaken global energy markets and the world economy but has also significantly impacted Pakistan’s trade, with exports to Middle Eastern countries dropping by up to 70 percent.
According to official documents obtained by Dunya News, Pakistan recorded a sharp decline in exports during March and April. In March alone, exports to Gulf Cooperation Council (GCC) countries plunged by nearly 70 percent, falling from over $315.1 million in March 2025 to $95.4 million during the same month in 2026.
The decline continued in April, although at a slower pace, with exports to GCC countries decreasing by more than 23 percent. Pakistan exported goods worth $200 million to the region in April 2025, compared with $152.4 million in April 2026.
The GCC bloc includes the United Arab Emirates, Saudi Arabia, Bahrain, Oman, Kuwait and Qatar.
Among the member states, the UAE recorded the steepest decline in March, with exports dropping by 74 percent. Exports to Saudi Arabia fell by 56 percent, Qatar by 64 percent and Oman by 85 percent. Meanwhile, exports to Kuwait decreased by 21 percent, while Bahrain recorded an 85 percent decline.
According to the Ministry of Commerce, the conflict has disrupted both sea and air transportation routes while also driving up shipping and logistics costs. The UAE has been particularly affected due to disruptions in its logistics network.
Pakistan relies heavily on the UAE’s Jebel Ali Port for regional trade, with nearly 80 percent of its trade with GCC countries passing through the major transit hub.
Trade experts warn that prolonged instability in the region could further increase shipping insurance costs, delay cargo movement and place additional pressure on Pakistani exporters already facing rising production and transportation expenses.
Analysts also believe that if tensions persist, Pakistan may face broader economic consequences, including pressure on foreign exchange earnings and trade balances, as the Middle East remains a key destination for Pakistani exports and a major source of economic activity linked to overseas workers and regional commerce.
