KARACHI: Expressing grave concern over a 20 per cent increase in the trade deficit to $32 billion during 10MFY26, business leaders on Tuesday said the only sustainable way to stabilise the country’s fragile external account and protect foreign exchange reserves was to fast-track a comprehensive strategy to aggressively incentivise export sectors.

They urged the government to curb unnecessary imports that were contributing to the widening trade imbalance.

Federation of Pakistan Chamb­ers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh said that during July-April FY26, Pakistan’s import bill rose by nearly 7pc to $57.19bn, while exports declined by 6.25pc to $25.21bn from $26.89bn in the same period last year.

“This shows that the country is importing more than double the value of its exports, pushing the cumulative trade deficit up by 20.28pc to $31.99bn from $26.59bn a year ago,” he added.

Calls for fast-tracked export strategy

He said April recorded a 46-month high monthly trade deficit of $4.07bn. Although exports posted a 14.03pc year-on-year increase to $2.48bn during the month, the gain was outweighed by a sharp rise in import payments.

FPCCI Senior Vice President Saquib Fayyaz Magoon said the surge in imports indicated that temporary import compression measures had failed and that structural weaknesses in exports must be addressed without delay.

The FPCCI acknowledged some relief from the services sector, where the deficit narrowed by 6.7pc to $2.15bn during July-March FY26, supported by a 17pc increase in services exports to $7.35bn. However, it said merchandise exports remained the core driver of the economy.

Mr Magoon noted that traditional manufacturing and textile sectors were struggling to compete globally due to high energy tariffs, a restrictive monetary policy, and a deteriorating ease of doing business environment.

FPCCI Vice President Abdul Mohamin Khan called for urgent rationalisation of electricity and gas tariffs for export-oriented industries to bring them in line with regional competitors. He also urged a significant reduction in the policy rate to encourage industrial borrowing and expansion.

Korangi Association of Trade and Industry President Muhammad Ikram Rajput also urged the government to adopt comprehensive policies to boost exports while reducing unnecessary imports.

He proposed higher duties on non-essential and luxury goods, as well as an outright ban on certain avoidable imports to conserve foreign exchange.

Published in Dawn, May 6th, 2026