President of the Korangi Association of Trade and Industry, Muhammad Ikram Rajput, has raised alarm over Pakistan’s widening trade deficit, cautioning that the persistent increase in imports alongside slow export growth poses a serious threat to the country’s economic stability.
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Speaking on the issue, Rajput highlighted that Pakistan’s trade deficit surpassed $4 billion in April 2026, marking one of the highest levels in recent years. He warned that this trend could place further strain on foreign exchange reserves and contribute to continued depreciation of the national currency.
While acknowledging some improvement in exports, he noted that the surge in imports has overshadowed these gains, leading to a deteriorating trade balance. He emphasized the need for immediate and effective government intervention to address the imbalance.
Rajput called for the introduction of stricter measures, including higher duties on non-essential and luxury goods, as well as potential restrictions on avoidable imports. According to him, such steps would help conserve valuable foreign exchange while encouraging the growth of domestic industries.
He also pointed out the structural challenges faced by local manufacturers, stating that high energy costs, shortages of raw materials, and rising operational expenses are major barriers to export growth. Without addressing these issues, he said, sustainable improvement in exports would remain difficult.
The KATI president urged the government to provide targeted incentives for export-oriented sectors, improve access to international markets, and prioritize domestic production to reduce reliance on imports. He further stressed the importance of developing a coordinated economic strategy in consultation with industry stakeholders to ensure long-term stability and growth.
