Pakistan, Sept. 9 -- Pakistan's trade deficit with Gulf markets nearly halved in July as energy imports fell sharply, with analysts this week linking the decline to disruptions around the Strait of Hormuz and increased production by domestic refineries.

The combined deficit with Saudi Arabia, the United Arab Emirates, Kuwait, Bahrain, Qatar and Oman fell 46.5 percent to $750.5 million from around $1.4 billion a year earlier, according to State Bank of Pakistan data.

Imports from the six GCC markets declined 38.1 percent to $1.04 billion, while exports rose 4.7 percent to $290.3 million.

Pakistan relies heavily on Gulf suppliers for crude oil, refined petroleum products and liquefied natural gas, leaving its import bill particularly exp...