BMPP General Secretary urges government to reduce energy costs, rationalise taxes and improve the business environment to boost exports.
KARACHI: Khurram Ijaz, General Secretary of Pakistan Business Panel Progressive (BMPP) and former president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has expressed serious concerns over the widening trade deficit, urging the government to take immediate measures to strengthen exports and improve the country’s external account position.
Ijaz said Pakistan’s growing trade imbalance during the first four months (July–October) of fiscal year 2026-27 highlighted the need for concrete policy measures to enhance export competitiveness and support domestic industries.
According to the Pakistan Bureau of Statistics (PBS), Pakistan’s merchandise trade deficit widened by nearly 16 per cent to $14.63 billion during 4MFY27, compared with $12.61 billion in the corresponding period last year.
Imports increased by 12.59 per cent to $25.96 billion, while exports grew by 8.52 per cent to $11.34 billion, indicating that import growth continued to outpace export expansion.
The situation also deteriorated in October 2026, when the trade deficit increased by 19.70 per cent year-on-year to $3.88 billion, against $3.24 billion in October 2025.
During the month, imports rose by 11.81 per cent to $6.81 billion, whereas exports recorded growth of only 2.84 per cent to $2.93 billion. Compared with September 2026, the trade deficit also expanded by 10.30 per cent.
Commenting on the figures, Ijaz emphasised that the government must prioritise export-led economic growth rather than relying on measures that increase the cost of doing business.
He urged the government to lower energy tariffs, rationalise the tax structure and introduce business-friendly policies to facilitate manufacturers and exporters.
He also stressed the importance of improving ease of doing business, removing unnecessary regulatory hurdles and ensuring a predictable policy environment to attract investment and expand industrial production.
Ijaz maintained that strengthening Pakistan’s export base was essential to reducing the trade deficit, containing external sector pressures and achieving sustainable economic growth. The latest trade figures underline the importance of addressing structural challenges affecting export-oriented industries and creating conditions that enable Pakistani businesses to compete effectively in international markets.