Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh today expressed deep concern over the sharp deterioration in Pakistan’s trade balance, saying the country’s trade deficit widened significantly on a month-on-month basis to reach $4.53 billion in June 2026.
Mr Sheikh reiterated that the country’s apex trade body had repeatedly warned the government over the past few years that declining exports posed a serious threat to Pakistan’s external account stability and foreign exchange reserves.
The FPCCI president said that, according to data released by the Pakistan Bureau of Statistics (PBS), exports fell by 16.73% to $2.24 billion in June 2026, while imports increased by 24.07% to $6.77 billion compared with the previous month.
He described the June 2026 trade figures as a wake-up call for the government’s economic team. He said a nearly 17% decline in exports within a single month was not merely a statistical setback but a clear indication that Pakistan’s export-oriented industries were coming under severe pressure. He added that the high cost of doing business, driven by elevated energy tariffs, high interest rates, and an unpredictable taxation regime, had significantly undermined the country’s competitiveness in international markets.
The FPCCI president urged the government to rationalize energy tariffs, restore the Final Tax Regime (FTR) for exporters, and reduce the policy interest rate to prevent widespread industrial closures and a further decline in exports. He added that the cumulative trade deficit for the fiscal year 2025-26 had reached $39.47 billion, representing a 21.57% increase compared with the previous fiscal year.
FPCCI Senior Vice President Saquib Fayyaz Magoon said the widening gap between imports and exports was unsustainable. He warned that ending the fiscal year with a trade deficit approaching $39.47 billion would place immediate pressure on Pakistan’s macroeconomic stabilization efforts.
He stressed that the government should strike a careful balance by curbing luxury and non-essential imports while ensuring that raw materials required by export-oriented industries remained readily available and were not subjected to unnecessary regulatory restrictions.
FPCCI Vice President and Regional Chairman Sindh Abdul Mohamin Khan highlighted the impact of the deteriorating trade indicators on the country’s largest industrial hub. He said industries in Sindh, particularly those located in Karachi’s manufacturing zones, were bearing the brunt of the decline in exports. He added that high electricity tariffs, inadequate infrastructure, and soaring land prices had made it increasingly difficult for manufacturers to expand production.
Khan called on the provincial and federal governments to immediately abolish redundant levies and establish fast-track business facilitation centres across Sindh to reduce operational bottlenecks.
The FPCCI leadership unanimously urged the Ministry of Finance and the Ministry of Commerce to engage with the business community without delay to formulate a comprehensive crisis-response strategy aimed at shifting Pakistan’s economy from a stabilization-focused approach to an export-led growth model.