Karachi, April 18, 2026 – Pakistan’s imports from the United Arab Emirates (UAE) declined sharply in March, while exports posted a modest increase, as regional tensions linked to the Iran conflict disrupted trade flows, central bank data showed.
According to figures released by the State Bank of Pakistan (SBP), import payments to the UAE fell 22% to $498 million in March 2026, compared with $635 million in the same month a year earlier.
Analysts attributed the decline to disruptions in shipping routes after the Strait of Hormuz, a key maritime corridor, was affected by the ongoing conflict, slowing the movement of goods between Gulf countries and Pakistan.
In contrast, Pakistan’s exports to the UAE rose 5% year-on-year to $205 million in March, up from $195 million in the corresponding month of 2025, reflecting relatively resilient demand despite logistical challenges.
The UAE remains a key trading partner for Pakistan, supplying a wide range of goods including raw materials and finished products, while also serving as an important market for Pakistani exports.
On a cumulative basis, imports from the UAE during the first nine months (July–March) of fiscal year 2025–26 stood at $5.96 billion, slightly higher than $5.86 billion recorded in the same period last year.
Exports to the UAE during the same period rose marginally to $1.63 billion, compared with $1.61 billion a year earlier, indicating steady bilateral trade despite recent volatility.
Market experts said the contrasting trend in March highlights the uneven impact of geopolitical tensions on trade, with import-dependent sectors more vulnerable to supply chain disruptions.
They added that any sustained easing in regional tensions and restoration of normal shipping activity would be critical for stabilising trade flows in the coming months.