Karachi, The United Business Group (UBG) has expressed concern over the escalating trade deficit of Pakistan with its regional partners. The leaders of UBG, including President Zubair Tufail, Regional Chairman Khalid Tawab, and Secretary General Hanif Gohar, have highlighted a substantial increase in the trade gap, which has intensified economic challenges for the country.

According to United Business Group, data from the State Bank of Pakistan (SBP) reveal that Pakistan's trade deficit with nine regional countries rose by 10.98 percent, reaching $5.415 billion in the first eight months of the current fiscal year, up from $4.879 billion in the corresponding period of the previous year. This increase is largely attributed to higher imports from China and India, despite a notable rise in exports to China by 42 percent year-on-year.

The SBP's figures indicate that imports from China escalated by 14.72 percent to $8.105 billion, whereas imports from India increased by 10.47 percent to $238.72 million in the same timeframe. Meanwhile, Pakistan's export performance showed a mixed picture, with a significant decline in exports to countries like Afghanistan and Bangladesh.

UBG leaders have called for immediate and strategic actions to address the growing trade deficit. They stressed the need for Pakistan to enhance its export capabilities and lessen its import dependency, aiming to establish a more balanced and sustainable trade relationship with its regional counterparts.