Iran-US confrontation hits Pakistan’s exports to the Middle East hard

— The current Iran-US war has not only rattled the global energy markets and the international economy, but has also severely harmed Pakistan’s trade with shipments to Middle Eastern countries nosediving by as much as 70 percent.

Official documents obtained by Dunya News revealed that Pakistan had a substantial fall in exports in March and April. Exports to Gulf Cooperation Council (GCC) countries plummeted about 70 percent in March alone, from more than $315.1 million in March 2025 to $95.4 million in the same month in 2026.

The downturn continued in April albeit at a reduced pace, with shipments to GCC countries falling by more than 23 percent. April 2025 saw Pakistan send commodities worth $200 million to the region, while in April 2026, it exported goods worth $152.4 million.

The GCC bloc includes the United Arab Emirates, Bahrain, Oman, Saudi Arabia, Kuwait and Qatar.

March saw the UAE suffer the biggest loss in exports among member states, down 74 percent. Exports to Saudi Arabia decreased 56 percent, to Qatar by 64 percent and to Oman by 85 percent. While shipments to Kuwait fell 21 percent, with Bahrain recording a drop of 85 percent.

The violence has affected sea and air transport lines and raised prices for shipping and logistics, the Ministry of Commerce said. This has impacted the UAE hard because of the breakdown in its logistical network.

Pakistan is significantly reliant on the UAE’s Jebel Ali Port for regional trade, with approximately 80 percent of its trade with GCC countries moving through the key transit centre.

Trade experts worry that prolonged instability in the region could result in higher shipping insurance prices, slower flow of cargo and a further burden on Pakistani exporters already suffering rising production and transportation charges.

Analysts also see wider economic implications for Pakistan in case of lingering tensions, including pressure on foreign exchange earnings and trade balances, as the Middle East is a major destination for Pakistani exports and a key source of economic activity linked to overseas workers and regional trade.