KARACHI: In the first quarter of fiscal year 2026-27, Pakistan's trade deficit expanded significantly, driven by a faster increase in imports compared to exports, according to a recent report by the Pakistan Bureau of Statistics. Mian Zahid Hussain, President of the Pakistan Businessmen and Intellectuals Forum, highlighted that while exports grew by 10.84 percent to USD 8.42 billion, imports surged by 13.21 percent to USD 19.21 billion, resulting in a 15.13 percent increase in the trade deficit, which reached USD 10.79 billion.
According to the Pakistan Businessmen and Intellectuals Forum, Mian Zahid Hussain expressed concern over the widening deficit, identifying it as a critical policy challenge for Pakistan's external trade balance. The month of September alone saw exports rise to USD 2.93 billion, while imports reached USD 6.49 billion, widening the monthly trade deficit to USD 3.55 billion. Hussein attributed part of the import increase to the US-Iran conflict, which has sharply raised petroleum prices, adding pressure to Pakistan's import bill.
Hussain warned that if the trend continues, the annual trade deficit could approximate USD 43.2 billion, exacerbating pressure on foreign exchange availability and the current account. He stressed the importance of sustainable export growth and strategic import substitution to manage external pressures effectively.
The business leader suggested that Pakistan needs to diversify its export portfolio and expand into new markets, focusing on value addition and competitive pricing to strengthen its international market position. Additionally, he called for governmental support in ensuring reliable energy supplies for export industries, streamlining port procedures, and maintaining consistent taxation and tariff policies to foster a business-friendly environment.
Hussain also advocated for developing domestic alternatives to reduce import pressures, emphasizing the need for a balanced approach that discourages non-essential imports while facilitating those crucial for industrial production. He underscored the necessity for coordination among government, industry, and exporters to stabilize external trade through effective policies and measurable targets.