KARACHI: President of the Korangi Association of Trade and Industry (KATI) Muhammad Ikram Rajput has expressed serious concern over Pakistan’s widening trade deficit, warning that the continued surge in imports coupled with sluggish export growth poses a significant risk to the national economy.
He noted that Pakistan’s trade deficit exceeded USD4 billion in April 2026, marking one of the highest levels in recent years. This trend, he said, could put additional pressure on foreign exchange reserves and further weaken the rupee.
Rajput stated that although exports have shown some improvement, the sharp rise in imports has offset these gains and worsened the overall trade balance. He urged the government to introduce comprehensive and effective policies aimed at boosting exports while simultaneously reducing unnecessary imports.
He proposed higher duties on non-essential and luxury goods, along with an outright ban on certain avoidable imports, to prevent the outflow of valuable foreign exchange. “Such measures will not only reduce import pressure but also support the growth of local industry,” he said.
Highlighting challenges faced by the industrial sector, Rajput stressed that meaningful export growth is not possible without facilitating domestic industries. He pointed out that high energy costs, shortages of raw materials, and rising cost of doing business remain major obstacles for manufacturers.
The KATI president called for targeted incentives for export-oriented industries, improved access to new international markets, and greater focus on enhancing domestic production to reduce reliance on imports and stabilise the trade balance.
He further urged the government and relevant institutions to develop a coordinated strategy in consultation with industry stakeholders to address economic challenges and ensure sustainable economic growth.
Copyright Business Recorder, 2026
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