Industrialists express concern over 15% surge in Pakistan’s trade deficit in 1QFY27

The Federation of Pakistan Chambers of Commerce & Industry (FPCCI) President, Atif Ikram Sheikh, has expressed alarm over the significant 15% increase in Pakistan's trade deficit during the first quarter of fiscal year 2026-27. According to official figures released by the Pakistan Bureau of Statistics, the trade deficit surged to $10.8 billion for July-September 2026, up from $9.4 billion in the same period last year.

Sheikh warned that this growing import bill could jeopardize the nation's economic stability and strain foreign exchange reserves. He pointed out that the escalating trade gap is primarily due to the exorbitant cost of conducting business in Pakistan, which includes high interest rates, massive electricity charges, and steep petroleum levies.

These factors are hindering local manufacturers' competitiveness against regional counterparts, as per the FPCCI chief's statement. Sheikh emphasized that without urgent structural reforms, the persistent shift to imports to satisfy domestic demand will deplete the national treasury and precipitate a balance of payments crisis. To prevent this, FPCCI leaders urged the Ministry of Finance and the State Bank of Pakistan to urgently reduce the policy rate to single digits, thereby making working capital more affordable for manufacturers.

The FPCCI further advocated for the rationalization of electricity and gas tariffs to match those of regional competitors and targeted relief on inland logistics to alleviate domestic supply chain costs.