FPCCI and KATI Raise Alarm Over Pakistan's Widening Trade Deficit

Two of Pakistan's leading industrial and trade bodies — the Federation of Pakistan Chambers of Commerce and Industry and the Korangi Association of Trade and Industry — have separately voiced deep concern over the country's expanding trade deficit, warning that the trend poses a structural threat to export competitiveness and the current account position.

Both organisations have called on the government to take urgent corrective measures, including reviewing import duties on raw materials, boosting export incentives, and addressing the energy cost burden that makes Pakistani manufacturers less competitive in international markets. The simultaneous alarm from two major industry voices amplifies the urgency of the issue.

Pakistan's trade deficit has been widening in recent months as import bills, particularly for energy and machinery, have risen while export growth has failed to keep pace. The current account pressure adds complexity to Pakistan's ongoing IMF programme obligations and foreign exchange management.

Industry representatives stress that without targeted policy intervention in the upcoming federal budget, the trade gap could widen further, compounding pressure on the rupee and undermining the fragile economic recovery underway since the IMF programme stabilised the macro environment.