Karachi: Pakistan's economic challenges have reached a critical juncture, as the country recorded its highest trade deficit in nearly four years, prompting calls for urgent export-led reforms. Mian Zahid Hussain, President of the Pakistan Businessmen and Intellectuals Forum, voiced concerns over the trade deficit, which exceeded $4 billion in April 2026, driven by a significant rise in the import bill to $6.55 billion.

According to Pakistan Businessmen and Intellectuals Forum, the surge in imports, fueled by a global oil shock and ongoing Middle East conflicts, has nearly tripled energy import costs. Despite a year-on-year increase of 14.03% in exports, reaching $2.48 billion in April 2026, this growth has been insufficient to counterbalance the rising import demands. The cumulative trade deficit for the first ten months of the fiscal year has expanded by over 20 percent to $31.98 billion, compared to the same period last year.

Mian Zahid Hussain highlighted additional economic pressures, including threats to foreign remittances due to geopolitical tensions and the expulsion of Pakistani workers from the Gulf region. These factors jeopardize the significant monthly inflow of $2.5 billion to $3.5 billion crucial to the country's economy. The vulnerability of foreign exchange reserves and the increasing cost of external debt servicing further compound the economic challenges.

To mitigate these issues, Mian Zahid Hussain proposed a strategy focused on energy security, transitioning to renewable energy sources, and providing incentives to enhance the competitiveness of the textile sector. He also recommended exploring new markets and negotiating better terms for external debt. Without these measures, he warned, Pakistan risks remaining trapped in a cycle of deficits and debt.