‘External trade once again flashing warning signal’

KARACHI: Pakistan’s external trade is once again flashing a warning signal, as export growth loses momentum while imports continue to rise sharply. This widening divergence between exports and imports is putting renewed pressure on the country’s trade balance and contributing to a further expansion of the trade deficit, said Ateeq ur Rehman economic & financial analyst.

The exporters problems lies in high production and manufacturing cost like severe pressure of high electricity and gas tariffs, record fuel prices, high mark ups, expensive financing, heavy taxation, delayed refunds, regulatory hurdles, costly imported raw material, rising logistics / shipping cost, a severe shortage of vessel space, disrupted cargo movement, massive losses to exporters during strikes by transporters, etc.

There is always a concern at trucker’s strike, which create an alarming situation. Transport disruption is an unbearable burden the entire production system depends on timely supply of raw material and delivery of finished goods.

If export consignment fails to reach buyers on time, industries faces penalties, price cuts and claim for damages, etc.

Export consignments must be protected from further disruption amid the multiple challenges confronting the supply chain.

Any suspension or interruption in cargo movement could have far reaching economic consequences, including the paralysis of factory operations, disruption of production schedules, delays in export shipments, and potential breaches of contractual commitments.

Ensuring the uninterrupted movement of export cargo is therefore critical to maintaining industrial activity, safeguarding international trade commitments, and sustaining the country’s export competitiveness.

The exports consignment should be allowed safe and easy movement during any disruptions and obstacles added Ateeq.

Presently, Pakistan exports of goods and services remain around approx USD38/40 billion, only 8 percent of GDP that is one of the lowest of global value chain. We have to reach USD100 billion in another two years, this will require export growth of 40 percent every year - big challenge but many countries have shown such export transformations, we can do it by increasing capacities, institutional capabilities, good governance and skills.

High and towering duties on intermediate and capital goods make local producers less competitive. When the production line of goods and services move efficiently, business can plan more reliably, supply chain becomes more resilient.

Copyright Business Recorder, 2026