KARACHI: Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has expressed his grave concerns over the critical expansion in Pakistan’s trade deficit – which has surged by 20.28 percent to reach USD32 billion during the first 10 months of the current fiscal year (July-April FY26).
He in an urgent appeal to policymakers, emphasised that the only sustainable solution to stabilise the nation’s fragile external account and protect foreign exchange reserves shall be a comprehensive and fast-tracked strategy to aggressively incentivize the export sectors.
FPCCI Chief, analysing the latest figures released by the Pakistan Bureau of Statistics (PBS) on Tuesday, highlighted the severely disproportionate ratio between the country’s exports and imports. During the July to April period of FY26, Pakistan’s import bill climbed by nearly 7 percent, reaching a staggering USD57.19 billion. In a stark contrast, total export proceeds over the same ten-month time-frame contracted by 6.25 percent – falling to USD25.21 billion from USD26.89 billion in the corresponding period last year.
Sheikh explained that this immense gap means the country is importing more than double the value of what it exports, pushing the cumulative trade deficit up by 20.28 percent from USD26.59 billion a year ago.
FPCCI President stressed that the business community’s apprehensions are further magnified by the monthly data for April 2026, which recorded a 46-month high monthly trade deficit of USD4.07 billion. While April witnessed a 14.03 percent year-on-year recovery in monthly export receipts, reaching USD2.48 billion – but, this growth was entirely eclipsed by massive import payments.
However, Saquib Fayyaz Magoon, SVP FPCCI, maintained that the monthly imports surged by 7.46 percent year-on-year and a dramatic 28.41 percent month-on-month, clocking in at an overwhelming USD6.55 billion. FPCCI asserts that these figures unequivocally prove that temporary import compression tactics have failed – and, structural export weaknesses must be immediately addressed.
He stated that, while FPCCI acknowledged a marginal relief from the services sector – where the trade deficit narrowed by 6.7 percent to USD2.15 billion during July-March FY26, backed by a healthy 17 percent rise in services exports to USD7.35 billion – the apex body reiterated that merchandise exports remain the core engine of Pakistan’s economy. The traditional manufacturing and textile sectors simply cannot compete on the global stage while battling the region’s highest energy tariffs, a highly restrictive monetary policy and a continuously deteriorating ease of doing business, he added.
However, Abdul Mohamin Khan, VP & Regional Chairman Sindh, FPCCI, reiterated that, to avert a potential balance of payments crisis, FPCCI strongly advocates for an immediate pivot toward export-led economic growth. We have outlined a set of critical, data-driven interventions required from the government – primarily focusing on reducing the crippling cost of industrial production.
He pointed out that these interventions should include the urgent rationalization of electricity and gas tariffs for export-oriented industries to bring them at par with regional competitors, alongside a significant reduction in the policy rate to spur industrial borrowing and capacity expansion, he added.
FPCCI is also calling for the immediate disbursement of all pending export rebates, the introduction of targeted tax incentives for non-traditional export sectors such as IT, engineering goods and pharmaceuticals – and aggressive diplomatic efforts to secure zero-duty access or Free Trade Agreements (FTAs) with major global markets.
Copyright Business Recorder, 2026
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