KARACHI: United Business Group (UBG) President Zubair Tufail has expressed concern over Pakistan’s trade deficit reaching $10.8 billion during the first quarter of the current fiscal year.
He said that although exports recorded a significant year-on-year increase in September 2026, the rapid growth in imports remains a major challenge to the country’s trade balance.
He stressed that the government must adopt an immediate and comprehensive strategy to increase exports while effectively managing the import bill, as a persistently widening trade deficit could increase pressure on the country’s foreign exchange reserves and external payment obligations.
Zubair Tufail urged the government to reduce electricity, gas and other production costs to make export-oriented industries more competitive, facilitate the import of industrial raw materials and essential machinery, and ensure the timely payment of refunds to exporters.
He said special attention should be given to increasing exports not only in textiles but also in IT, engineering, pharmaceuticals, rice, leather, sports goods, surgical instruments and other value-added sectors.
He stressed that the responsibility for increasing exports should not be placed solely on exporters; rather, the government should also play an active role in expanding the country’s export base through trade delegations and effective international marketing.
He further proposed that commercial counsellors posted at Pakistani embassies and consulates abroad should be given clear export-promotion targets and tasked with facilitating greater access to local markets.
According to the Pakistan Bureau of Statistics, exports reached $2.94 billion in September, also recording an increase on a month-on-month basis, indicating further potential for expanding the country’s export capacity.
He further said that, to control the trade deficit, the government, State Bank of Pakistan and private sector should jointly formulate a clear and practical “Export Growth Roadmap”, prioritizing long-term incentives for exporters, investment in the productive sector, domestic production of industrial raw materials and the development of import-substitution industries. ZubairTufail said that instead of imposing unnecessary restrictions on imports, the government should adopt a policy that allows continued import of productive and industrial inputs while discouraging non-essential and low-priority imports.
He also emphasized the need to further increase earnings from services, particularly IT and digital exports, so that the
deficit in merchandise trade can be partially offset and Pakistan can move towards reducing its trade deficit on a sustainable basis.
Copyright Business Recorder, 2026