FRIA alarmed as trade deficit widens 33%, calls for urgent industrial reforms
\n Lahore
\nThe Ferozepur Road Industrial Association (FRIA) has expressed deep concern over the sharp 33 per cent surge in Pakistan\u2019s trade deficit to $9.4 billion during the first quarter of the current fiscal year, warning that the widening gap between imports and exports reflects structural weaknesses in industrial and trade policy.
\nFRIA Chairman Shahbaz Aslam, reacting to the latest data released by the Pakistan Bureau of Statistics, said the figures were \u201ca wake-up call for policymakers who continue to ignore the manufacturing sector\u2019s decline.\u201d He noted that while imports grew by 13.5 per cent to $17 billion, exports fell 3.8 per cent to $7.6 billion \u2014 a trend that he described as \u201cdeeply alarming for both external stability and domestic production.\u201d
\n\u201cThe growing dependence on imported materials, combined with stagnant industrial output and falling exports, shows that our so-called reform plans are missing their targets,\u201d Aslam said. \u201cNeither the Planning Commission\u2019s Uraan Pakistan initiative nor the imported economic frameworks have delivered the necessary boost to productivity or competitiveness.\u201d
\nHe added that the situation is made worse by exchange rate rigidity and inconsistent policy signals. \u201cExporters are struggling to stay competitive while the rupee remains artificially managed. If the government wants to reduce the deficit, it must allow market-based currency adjustments, ensure timely refunds, and restore confidence among genuine exporters.\u201d
\nShahbaz Aslam warned that the ballooning trade deficit\u2014now larger than the anticipated $2 billion IMF tranche\u2014would intensify pressure on foreign reserves and push the government toward further borrowing. \u201cWe are once again repeating the cycle of external dependence because local industry is being squeezed instead of supported,\u201d he said.
\nThe FRIA chairman urged the government to take immediate corrective measures, including incentivising value-added exports, stabilising energy tariffs, and facilitating industrial raw material imports through predictable pricing mechanisms. \u201cWe cannot grow exports by taxing production and subsidising imports. The government must adopt an industrial-first approach that empowers factories rather than middlemen,\u201d he stressed.
\nShahbaz Aslam also cautioned that if current trends continue, Pakistan\u2019s exports could fall below $31 billion while imports may exceed $68 billion by the end of the fiscal year. \u201cThat gap would be catastrophic for employment, investment, and currency stability,\u201d he said, calling for a national consensus to realign trade and industrial policy.<\/p>\n","protected":false},"excerpt":{"rendered":"
FRIA alarmed as trade deficit widens 33%, calls for urgent industrial reforms Lahore The Ferozepur Road Industrial Association (FRIA) has expressed deep concern over the sharp 33 per cent surge in Pakistan\u2019s trade deficit to $9.4 billion during the first quarter of the current fiscal year, warning that the widening gap between imports and exports […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-506826","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n