ISLAMABAD
\nThe All Pakistan Business Forum (APBF) has sounded an alarm over Pakistan\u2019s widening trade deficit, urging urgent government action to boost exports and curb unsustainable import growth as the country\u2019s external trade position deteriorates sharply.
\nQuoting the Pakistan Bureau of Statistics (PBS) data APBF President Syed Maaz Mahmood said trade deficit has widened significantly in December 2025, expanding to USD 3.7 billion, up nearly 24 percent from USD 2.99 billion in the corresponding month last year. Exports fell steeply to USD 2.32 billion, down 20.4 percent year-on-year, while imports climbed to USD 6.02 billion over the same period. The cumulative deficit during the first six months of the current fiscal year reached USD 19.20 billion, an increase of roughly 35 percent compared to the same period last year.
\nAddressing the press, Syed Maaz Mahmood described the persistent trade gap as a \u201cserious threat to macroeconomic stability,\u201d noting that the imbalance between output and foreign exchange earnings was placing enormous stress on Pakistan\u2019s external accounts and currency reserves.
\nAPBF Chairman Ibrahim Qureshi highlighted that the march of the trade deficit was driven by a steep decline in export performance and a continued rise in import bills, particularly for non-essential and luxury goods. \u201cA widening trade deficit of this magnitude \u2014 driven by falling exports and rising imports \u2014 erodes foreign exchange reserves, weakens the rupee, and undermines investor confidence,\u201d he said.
\nAccording to the APBF president, merchandise exports have struggled due to sluggish global demand, reduced competitiveness, and structural challenges facing core sectors such as textiles, which remain Pakistan\u2019s largest foreign exchange earner. At the same time, domestic demand for imported machinery, consumer goods, and intermediate inputs has risen, adding further pressure to the trade balance, Mahmood noted.
\nMaaz Mahmood urged policymakers to prioritize export recovery through targeted incentives, diversification of export markets, and measures to reduce the cost of production for local manufacturers. He also called for stricter scrutiny of imports, especially where domestic industries have the capacity to meet local demand.
\n\u201cWe need a balanced trade policy that supports domestic production and export-led growth while carefully controlling unnecessary imports,\u201d he said, adding that without structural reforms, the trade gap would continue to widen in the coming months.
\nThe APBF president emphasized that an unchecked deficit not only affects foreign exchange reserves and the rupee\u2019s exchange rate but also threatens employment, industrial output, and economic growth prospects. He reiterated calls for a national strategy to enhance export competitiveness, including improving logistics, reducing energy costs, and enhancing access to finance for exporters.
\nHe also stressed the importance of closer cooperation between the private sector and government agencies to design and implement policies that would make Pakistan\u2019s exports more competitive in global markets.
\nAnalysts have echoed these concerns, noting that the current trajectory of the trade deficit \u2014 particularly the sharp drop in exports juxtaposed with rising imports \u2014 poses significant risks to Pakistan\u2019s broader economic stability unless addressed through coordinated policy measures.<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD The All Pakistan Business Forum (APBF) has sounded an alarm over Pakistan\u2019s widening trade deficit, urging urgent government action to boost exports and curb unsustainable import growth as the country\u2019s external trade position deteriorates sharply. Quoting the Pakistan Bureau of Statistics (PBS) data APBF President Syed Maaz Mahmood said trade deficit has widened significantly […]<\/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-523868","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n