Transporting export items to GCC countries: Govt exploring various options

ISLAMABAD: The government is exploring various options, including deployment of Pakistan National Shipping Corporation (PNSC) vessels for transporting exports to the Gulf Cooperation Council (GCC) countries, as Pakistan’s exports to the region declined by 12 percent while imports fell by 35 percent in July 2026 compared to the corresponding month of last year.

According to the Commerce Ministry, Pakistan’s exports to the United Arab Emirates (UAE) declined by 9.5 percent to USD 144.6 million in July 2026 from USD 159.8 million in July 2025.

Exports to Saudi Arabia fell by 20.5 percent to USD 42 million from USD 52.8 million, Oman by 3.7 percent to USD 15.8 million from USD 16.4 million, Bahrain by 50.8 percent to USD 2.3 million from USD 4.2 million, Kuwait by 7.4 percent to USD 7.4 million, and Qatar by 4.2 percent to USD 8.7 million from USD 9 million.

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Imports from GCC countries also registered a negative growth of 32.5 percent in July 2026, falling to USD 1.0009 billion from USD 1.4825 billion in the same month of 2025.

Imports from the UAE declined by 34.2 percent to USD 380.7 million from USD 576.5 million, Saudi Arabia by 4.7 percent to USD 295.3 million from USD 310 million, Bahrain by 44.4 percent to USD 15.1 million from USD 27.2 million, Kuwait by 92.8 percent to USD 9.5 million from USD 132.1 million and Qatar by 96.1 percent to USD 10.2 million from USD 261.8 million.

However, imports from Oman increased by 67.7 percent to USD 290.2 million from USD 173 million.

On a month-on-month basis, exports in July 2026 declined by 2.7 percent compared with June 2026. Exports to the UAE increased by 15.7 percent, Kuwait by 19.4 percent and Qatar by 88 percent, while exports to Saudi Arabia, Oman and Bahrain declined by 34.5 percent, 34.6 percent and 18.2 percent, respectively.

Imports in July were down 32.5 percent compared with June. Imports from the UAE declined by 17.9 percent, Saudi Arabia by 41.4 percent, Oman by 49.9 percent and Qatar by 93.2 percent. Imports from Bahrain and Kuwait, however, increased by 295.8 percent and 72 percent, respectively.

The Commerce Ministry attributed the sharp decline to worsening maritime security following the breakdown of the interim truce between the United States and Iran in July 2026, which it said had severely disrupted global shipping networks.

According to the ministry, the waterway normally handles 70 to 80 commercial vessel crossings a day, but traffic fell to as few as six vessels per day, leaving hundreds of ships anchored outside the Strait of Hormuz. It said the Iranian Revolutionary Guard Corps (IRGC) had claimed that vessels must seek its permission to transit the waterway, with the position being enforced through threats.

The ministry further said that attacks by Houthi militants on Saudi oil facilities and along the Red Sea coast had triggered threats against Saudi-linked shipping in the Bab al-Mandab Strait. As a result, commercial shipping between Pakistan and GCC countries has effectively halted, forcing Pakistani exports to the GCC in July to be transported by air.

To mitigate the disruption, the Commerce Ministry has proposed prioritising dedicated feeder links connecting Karachi directly with safer lower Gulf and Arabian Sea bypass nodes, including Fujairah, KhorFakkan and Omani ports outside the Hormuz chokepoint.

It has also proposed fast-tracking the operationalisation of multi-purpose passenger-cargo ferry services from Gwadar to GCC ports, with the objective of transforming Gwadar into an independent regional logistics and trade fallback.

The ministry is also exploring the option of using PNSC vessels to maintain export connectivity with GCC markets amid the continuing disruption to conventional commercial shipping routes.

Copyright Business Recorder, 2026