Pakistan’s Gulf Exports Rise Despite US-Iran War as UAE Leads Growth

Pakistan’s exports to the Gulf Cooperation Council (GCC) countries rose 2.1% during January-July 2026, reaching $1.944 billion compared with $1.904 billion during the same period last year.

Business leader Mian Zahid Hussain described the increase as encouraging amid the ongoing US-Iran war and regional uncertainty. He said the $40 million rise highlighted the continued importance of Gulf markets to Pakistan’s external trade.

The UAE remained Pakistan’s strongest GCC export destination. Exports to the country increased 5.9%, rising from $1.209 billion to $1.280 billion. The $71.1 million increase was larger than Pakistan’s overall $40 million net growth in exports to the GCC.

The UAE accounted for 65.9% of Pakistan’s total GCC exports during the period. Saudi Arabia followed with a 20.6% share. Together, the two markets accounted for 86.5% of Pakistan’s exports to the region.

Mian Zahid Hussain said the figures demonstrated the need to further strengthen commercial relations with both countries. He also urged Pakistan to expand its focus on Oman, Qatar, Bahrain and Kuwait to reduce its dependence on the two largest Gulf markets.

Kuwait Shows Strong Export Potential

Pakistan’s exports to Saudi Arabia recorded modest growth of 1.4%, reaching $401.1 million. Kuwait, however, posted the highest percentage increase among the GCC destinations.

Exports to Kuwait rose 14.7%, from $62.7 million to $71.9 million. Although Kuwait accounted for only 3.7% of Pakistan’s GCC exports, Mian Zahid Hussain said its performance showed the potential available in smaller Gulf markets.

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He called for targeted trade delegations, buyer-seller meetings and stronger promotion of Pakistani products in Kuwait.

Meanwhile, exports to Oman, Qatar and Bahrain registered slight declines. Exports to the four GCC markets outside Saudi Arabia and the UAE fell by around 4.5%, according to the figures cited by the business leader.

Mian Zahid Hussain said Pakistan should continue developing a positive commercial relationship with the UAE despite political differences. He stressed that economic cooperation should remain focused on trade, investment and business opportunities.

Export Recovery Gains Momentum

Pakistan’s monthly export figures showed considerable fluctuations during the first seven months of 2026.

Exports reached $323.2 million in February before declining to $298 million in March. They fell further to $241 million in April and $240.7 million in May.

A recovery began in June, when exports climbed to $259.5 million. The upward trend continued in July, with exports reaching $290.3 million.

July exports were 11.9% higher than June and 4.7% above the level recorded in July 2025. However, they remained about 10.2% below February’s peak.

Mian Zahid Hussain said the recovery was encouraging but needed to continue for several months before it could be considered sustainable.

Defence Cooperation Could Support Trade

Mian Zahid Hussain also praised Prime Minister Mian Muhammad Shehbaz Sharif and Field Marshal Syed Asim Munir for efforts to strengthen Pakistan’s diplomatic and economic relations with Gulf countries.

He said Pakistan’s defence cooperation with Saudi Arabia, followed by Türkiye’s inclusion, had enhanced the country’s international significance. He added that Kuwait, Egypt and Bangladesh had also shown interest in joining the arrangement.

According to him, stronger defence relations should also create opportunities for Pakistani businesses. He called for the agreements to be translated into export orders, business-to-business partnerships and improved access to international markets.

He proposed a two-tier strategy for Pakistan’s GCC exports. The first would focus on expanding the country’s presence in the UAE and Saudi Arabia. The second would target export recovery in Oman, Qatar, Bahrain and Kuwait.

He also recommended a product-level review using relevant HS codes to identify products driving export growth and those behind declining sales in individual Gulf markets.

Mian Zahid Hussain said Pakistan’s GCC exports had remained resilient despite regional uncertainty. However, he warned that sustainable growth would depend on maintaining the recent recovery and expanding Pakistan’s commercial presence across all six GCC markets.