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KARACHI: Pakistan’s trade deficit with Gulf nations widened 28.4% to $1.4 billion in July, the first month of the current fiscal year, driven by rising imports from the oil-rich region, State Bank of Pakistan (SBP) data showed this week.

Last year in July, the gap with the six-member Gulf Cooperation Council (GCC) — ����ֱ��, the United Arab Emirates (UAE), Qatar, Kuwait, Oman and Bahrain — had stood at $1.09 billion.

This time around, exports to the bloc fell 12.5% year-on-year to $277.3 million, while imports rose 19% to $1.68 billion.

Pakistan has been negotiating a free trade agreement (FTA) with the GCC to improve market access and signed preliminary accords in Riyadh two years ago.

“This is a significant development as the FTA is the first by GCC with any country since 2009 and marks a milestone in both sides’ economic cooperation,” then-commerce minister Gohar Ejaz said at the time.

Pakistan has continued to rely heavily on petroleum supplies from GCC states since then.

Its imports from the bloc totaled $17.9 billion in FY2024-25, nearly matching earnings from the country’s textile exports. In return, Pakistan exported $3.79 billion worth of goods and services to the GCC.

According to the data, the widening deficit reflects surging imports from the UAE, Pakistan’s largest oil supplier in the bloc.

July imports from the Emirates reached $816 million, while the FY25 bill stood at $8 billion.

The UAE is also Pakistan’s biggest export market in the GCC, buying $2.12 billion worth of goods last year, SBP data showed.

����ֱ�� and Qatar were other key suppliers, exporting $3.8 billion and $3.5 billion worth of oil and gas to Pakistan respectively in FY25.

Pakistan’s cash-strapped government is struggling to rein in its external account by curbing imports and boosting exports, but the country’s overall trade deficit rose nine percent to $26 billion last year, according to the Pakistan Bureau of Statistics.

ISLAMABAD: Pakistan Prime Minister Shehbaz Sharif has ordered a crackdown on tax evaders and recovery of outstanding dues, Pakistani state media reported on Tuesday, amid the government’s efforts to shore up revenues.

The prime minister issued the directives at a meeting on the Federal Board of Revenue-related matters, during which he called for a public awareness campaign regarding government measures against tax evasion.

Pakistan has lately introduced several reforms to ensure economic stability and to meet structural benchmarks under a $7 billion International Monetary Fund (IMF) program Islamabad secured last year.

The South Asian country has one of the lowest tax-to-GDP ratios in the region, despite a population of more than 240 million, and has often failed to meet its collection targets.

“Shehbaz Sharif asked the FBR to foster a business-friendly environment and ensure the provision of all possible facilities to taxpayers. He also directed the hiring of professionals to identify tax evaders and recover dues from them,” the Radio Pakistan broadcaster reported.

“He stressed the importance of leveraging both FBR’s internal resources and private sector expertise to detect individuals and companies involved in tax evasion.”

In June, Sharif’s government set a record-high tax collection target of Rs14.13 trillion ($47.4 billion) for the fiscal year 2025–26, marking a 9 percent increase from the previous year. Officials say meeting this goal is essential to reducing reliance on external debt and ensuring long-term fiscal sustainability.

Since then, the prime minister has approved modern digital ecosystem for the FBR to increase its collection and the launch of simplified digital tax returns to increase compliance and widen the country’s narrow tax base.

At Tuesday’s meeting, Sharif also asked officials to expedite the completion of an income and sales taxpayer directory, aimed at recognizing and honoring responsible taxpayers.

“Responsible citizens who regularly pay taxes are the backbone of the national economy,” he was quoted as saying. “Acknowledging taxpayers and taking firm action against tax evaders would contribute significantly to broadening the tax base.”