KARACHI: President of the United Business Group (UBG) and former president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Zubair Tufail, has expressed concern over Pakistan’s trade figures for July 2026, stating that the country’s trade deficit has increased by more than 25 percent to reach USD 3.95 billion.
He said that although the trade deficit declined by around 15 percent on a month-on-month basis, the continued rise in imports indicates that Pakistan’s economy remains heavily dependent on imported goods and energy.
Zubair Tufail said that import payments during July 2026 increased by nearly 18 percent to USD 6.89 billion, while export earnings also recorded an increase of approximately 10 percent.
According to him, the recovery in economic activity kept demand for industrial raw materials, machinery and other essential goods at a high level, resulting in elevated imports.
He added that the increase in global energy prices, driven by geopolitical tensions in the Middle East, significantly contributed to the higher import bill.
He pointed out that the prices of petroleum products and re-liquefied natural gas (RLNG) rose by 40 percent to 50 percent in July 2026 compared with the same month last year, directly increasing Pakistan’s import bill.
Since Pakistan is an energy-importing country, energy historically accounts for 20 percent to 25 percent of the country’s total imports. In addition, increased imports of machinery and vehicles required by the industrial and agricultural sectors further widened the trade deficit.
Zubair Tufail noted that the growth in exports is an encouraging development, with food products — particularly rice — playing a significant role in improving export earnings.
He said that textiles continue to be Pakistan’s largest export sector, contributing 55 percent to 60 percent of total exports. According to him, textile exports remained stable during the fiscal year ended June 30, 2026.
The detailed trade report to be released later this month will provide a clearer picture of which products made the largest contribution to export growth in July.
He urged the government to ensure the availability of affordable electricity and gas to industries in order to achieve sustainable export growth.
He also called for the timely payment of exporters’ refunds and tax rebates, promotion of value-added products, and strengthening of trade diplomacy to expand access to new international markets.
Zubair Tufail emphasised that reducing industrial production costs, promoting alternative energy sources, encouraging import-substitution industries, and providing consistent policy support to exporters would not only help reduce the trade deficit but also place Pakistan on a path of sustainable economic growth.
Copyright Business Recorder, 2026
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