Govt urged to provide power to industry at lower rates
KARACHI: Mian Zahid Hussain, President Pakistan Businessmen and Intellectuals Forum (PBIF) & All Karachi Industrial Alliance (AKIA), Chairman National Business Group Pakistan (NBG) and Chairman FPCCI Policy Advisory Board has urged the government to provide energy to Pakistani industries at rates comparable with competing countries, ensure swift payment of refunds, simplify tax system and improve logistics to revive exports.
At the same time, he said, the business community should focus on product diversification and effective access to non-traditional markets.
He further said that along with textile exports, Pakistan must also increase export of engineering goods, food products, IT services, pharmaceuticals, surgical, sports goods, minerals and value-added agriculture.
Hussain said that although Pakistan’s trade deficit is a warning sign, the government has effectively handled the negative impact of the US-Iran war and rising oil prices on the economy. However, sustainable economic stability is only possible through export-led growth.
He said that the increase in Pakistan’s trade deficit is a matter of concern; however, it needs to be viewed in the context of the rise in the import bill caused by higher international oil prices due to the US-Iran war. He said that during July-June 2025-26, Pakistan’s merchandise trade deficit increased to USD39.471 billion, compared to USD32.467 billion during the same period last year, registering an increase of 21.57 percent. Imports increased by 7.89 percent to USD69.597 billion, while exports declined by 5.97 percent to USD30.126 billion.
He said that Pakistan is heavily dependent on imports of petroleum products, LNG, raw materials and industrial inputs; therefore, any shock in global energy and raw material prices immediately affects the trade balance.
He said that the US-Iran war created uncertainty in the global fuel market, shipping, energy security and import costs, which also affected Pakistan’s overall import bill.
He said that June 2026 was a particularly difficult month, as imports increased to USD6.767 billion while exports remained at only USD2.239 billion, resulting in a monthly trade deficit of USD4.528 billion.
However, despite this pressure, the government handled external shocks in a better manner and did not allow panic to emerge in the external account.
Hussain said that remittances from overseas Pakistanis have become the strongest pillar of the national economy and are providing crucial support against the rising trade deficit. Strong remittance inflows have supported foreign exchange reserves, stabilized the rupee, reduced pressure on the current account and limited the need for emergency borrowing.
He said that during July-May 2025-26, services exports increased by 17.38 percent, while the services deficit declined by 24.10 percent. This shows that IT, freelancing, professional services and digital exports are playing an important role in supporting Pakistan’s balance of payments.
He said that the decline in exports is a cause for concern. Support from remittances and services exports is important, but Pakistan cannot achieve sustainable economic stability unless goods exports are enhanced on a stable basis.
He said that the reasons behind the decline in exports include high energy prices, a complicated tax system, delays in refunds, weak industrial competitiveness, limited value addition, rising logistics costs and insufficient access to new markets.
Copyright Business Recorder, 2026