KARACHI: Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has voiced severe alarm over the massive deterioration in Pakistan’s trade balance; which saw the deficit widening sharply on a month-on-month (MoM) basis to hit USD4.53 billion in June 2026.
He reiterated that the apex trade body had previously warned the government over the last couple of years that the effect of plunging exports poses a critical threat to the country’s external account stability and foreign exchange reserves.
FPCCI Chief explained that according to data from the Pakistan Bureau of Statistics (PBS), exports in June 2026 plummeted by 16.73 percent to USD2.24 billion; while, imports surged by 24.07 percent to USD6.77 billion compared to the previous month.
Sheikh termed the June 2026 trade figures a wake-up call for the government. A nearly 17 percent drop in exports in a single month is not just a statistical decline; it is a clear indicator that our export-oriented industries are being pushed to the wall.
The sheer cost of doing business – driven by rising energy tariffs, high interest rates, and an unpredictable taxation environment – has severely crippled Pakistan’s competitiveness in the export markets.
FPCCI President appealed to the government to rationalise energy costs, reinstate the Final Tax Regime (FTR) for exporters, and lower the policy rate to prevent widespread industrial closures and decline in exports.
The cumulative trade deficit for the just ended fiscal year (FY26) reached a staggering USD39.47 billion – showing a 21.57 percent year-on-year (YoY) increase compared to FY25.
However, Saquib Fayyaz Magoon, SVP FPCCI, highlighted the non sustainability of the current import-export gap. Ending the fiscal year with a trade deficit approaching USD39.47 billion has put immense and immediate pressure on our macroeconomic stabilization efforts, he said.
He stressed that the government must strike a delicate balance – curbing luxury and non-essential imports while ensuring that the raw materials required by our export manufacturers remain accessible and free from unnecessary regulatory hurdles.
Abdul Mohamin Khan, VP FPCCI & Regional Chairman Sindh, FPCCI, emphasised the localised impact of the deteriorating trade metrics on the country’s largest industrial hub. The industries in Sindh, particularly in Karachi’s manufacturing zones, are bearing the brunt of this export contraction. Unbearable electricity tariffs, dilapidated infrastructure, and exorbitant land prices are making it impossible to scale up production.
Khan called upon the provincial and federal governments to immediately abolish redundant levies and establish fast-track business facilitation centers across Sindh to lower operational frictions.
The FPCCI leadership unanimously urged the Ministry of Finance and the Ministry of Commerce to sit down with the business community immediately to devise a crisis-response strategy that transitions the economy from a strict stabilisation model to an export-led growth model.
Copyright Business Recorder, 2026
Comments