KARACHI, MAY 5 /DNA/ – Atif Ikram sheikh, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has expressed his grave concerns over the critical expansion in Pakistan’s trade deficit – which has surged by 20.28% to reach $32 billion during the first 10 months of the current fiscal year (July-April FY26).
Mr. Atif Ikram Sheikh, in an urgent appeal to policymakers, emphasized that the only sustainable solution to stabilize the nation’s fragile external account and protect foreign exchange reserves shall be a comprehensive and fast-tracked strategy to aggressively incentivize the export sectors.
FPCCI Chief, analyzing the latest figures released by the Pakistan Bureau of Statistics (PBS) on Tuesday, highlighted the severely disproportionate ratio between the country’s exports and imports. During the July to April period of FY26, Pakistan’s import bill climbed by nearly 7%, reaching a staggering $57.19 billion. In a stark contrast, total export proceeds over the same ten-month time-frame contracted by 6.25% – falling to $25.21 billion from $26.89 billion in the corresponding period last year.
Mr. Arif Ikram Sheikh explained that this immense gap means the country is importing more than double the value of what it exportاs, pushing the cumulative trade deficit up by 20.28% from $26.59 billion a year ago.
FPCCI President stressed that the business community’s apprehensions are further magnified by the monthly data for April 2026, which recorded a 46-month high monthly trade deficit of $4.07 billion. While April witnessed a 14.03% year-on-year recovery in monthly export receipts, reaching $2.48 billion – but, this growth was entirely eclipsed by massive import payments.
Mr. Saquib Fayyaz Magoon, SVP FPCCI, maintained that the monthly imports surged by 7.46% year-on-year and a dramatic 28.41% month-on-month, clocking in at an overwhelming $6.55 billion. FPCCI asserts that these figures unequivocally prove that temporary import compression tactics have failed – and, structural export weaknesses must be immediately addressed.
Mr. Saquib Fayyaz Magoon stated that, while FPCCI acknowledged a marginal relief from the services sector – where the trade deficit narrowed by 6.7% to $2.15 billion during July-March FY26, backed by a healthy 17% rise in services exports to $7.35 billion – the apex body reiterated that merchandise exports remain the core engine of Pakistan’s economy. The traditional manufacturing and textile sectors simply cannot compete on the global stage while battling the region’s highest energy tariffs, a highly restrictive monetary policy and a continuously deteriorating ease of doing business, he added.
Mr. Abdul Mohamin Khan, VP & Regional Chairman Sindh, FPCCI, reiterated that, to avert a potential balance of payments crisis, FPCCI strongly advocates for an immediate pivot toward export-led economic growth. We have outlined a set of critical, data-driven interventions required from the government – primarily focusing on reducing the crippling cost of industrial production.
Mr. Abdul Mohamin Khan pointed out that these interventions should include the urgent rationalization of electricity and gas tariffs for export-oriented industries to bring them at par with regional competitors, alongside a significant reduction in the policy rate to spur industrial borrowing and capacity expansion, he added.
FPCCI is also calling for the immediate disbursement of all pending export rebates, the introduction of targeted tax incentives for non-traditional export sectors such as IT, engineering goods and pharmaceuticals – and aggressive diplomatic efforts to secure zero-duty access or Free Trade Agreements (FTAs) with major global markets.
