Pakistan Trade Deficit Rises 15.13% in First Quarter of FY2026-27
Pakistan’s trade deficit increased by 15.13 percent during the first quarter of fiscal year 2026-27, raising concerns about additional pressure on the country’s foreign exchange reserves.
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said the trade gap reached $10.792 billion between July and September 2026, compared with $9.374 billion recorded during the same period last year.
The deficit also increased in September alone. According to data from the Pakistan Bureau of Statistics (PBS), the monthly trade gap stood at $3.55 billion, compared with $3.35 billion in September 2025, representing an increase of 6.15 percent.
FPCCI Raises Concerns Over Rising Trade Gap
FPCCI President Atif Ikram Sheikh said the widening trade deficit reflects some of the challenges faced by Pakistan’s industrial and manufacturing sectors.
He pointed to the high cost of doing business as one of the factors affecting the competitiveness of local manufacturers compared with businesses in regional markets.
According to Sheikh, high interest rates, electricity capacity charges and petroleum levies are increasing production costs and making it more difficult for industries to expand productivity and value-added exports.
Import Growth Could Add Pressure
The FPCCI president also warned that continued dependence on imports to meet domestic demand could increase pressure on the national exchequer.
He said a persistent increase in the trade gap could also create risks for the country’s balance of payments if structural economic measures are not introduced.
With Pakistan aiming to increase exports during FY2026-27, the business community has called for measures aimed at reducing production costs and improving the competitiveness of local industries.
FPCCI Calls for Lower Interest Rates
FPCCI has urged the Ministry of Finance and the State Bank of Pakistan (SBP) to consider bringing the policy rate into single digits.
The business body believes lower interest rates could help manufacturers access working capital at more affordable costs and support investment in industrial activity.
The FPCCI president also called for the rationalization of electricity and gas tariffs so that Pakistani industries can compete more effectively with regional producers.
In addition, the chamber has sought targeted relief on inland transportation and logistics costs. Lower supply-chain expenses, it said, could help manufacturers reduce overall production costs and improve the competitiveness of Pakistani exports.
