LAHORE: The Pakistan Industrial and Traders Associations Front (PIAF) has expressed serious concern over the widening trade deficit, warning that the growing imbalance between imports and exports is increasing pressure on foreign exchange reserves, undermining economic stability and prolonging the country\u2019s dependence on external borrowing. PIAF Chairman Faheemur Rehman Saigol, Senior Vice Chairman Nasrullah Mughal and Vice Chairman Tahir Manzoor Chaudhry, in a joint statement, said the latest trade figures reflected deep-rooted structural weaknesses in the economy and highlighted the urgent need for a comprehensive strategy to strengthen exports, promote domestic production and reduce unnecessary imports. They observed that Pakistan\u2019s trade deficit had widened by 16 per cent to $14.6 billion during the first four months (July-October) of the current fiscal year, as imports reached approximately $26 billion against exports of just $11.4 billion. The widening gap reflected the country\u2019s persistent inability to expand its export base at a pace sufficient to meet its growing import requirements. Faheemur Rehman Saigol said the widening trade gap was a serious warning for policymakers, as continued reliance on foreign loans and debt rollovers could not provide a sustainable solution to the country\u2019s external account difficulties. News Desk
\nHe said Pakistan needed to shift decisively towards an export-led economic model by addressing the factors that were making domestic production expensive and reducing the competitiveness of local manufacturers in international markets.
\nHe pointed out that high energy tariffs, heavy taxation, expensive financing and regulatory complications were discouraging industrial expansion and limiting the ability of exporters to compete with regional economies.
\nSaigol stressed that the government must provide a predictable and business-friendly policy environment, rationalise the tax structure and reduce the cost of doing business. He said industries needed affordable energy, easier access to credit and timely payment of tax refunds to improve production capacity and generate exportable surpluses.
\nNasrullah Mughal said the widening trade deficit also reflected the failure to fully mobilise the country\u2019s industrial and entrepreneurial potential. He emphasised that frequent changes in taxation, energy pricing and economic regulations were creating uncertainty among investors and discouraging long-term industrial planning.
\nMughal observed that small and medium enterprises (SMEs) had enormous potential to contribute to export growth but continued to face difficulties in obtaining affordable financing, modern technology and access to international markets.
\nMughal further stressed that exporters should receive their legitimate refunds without delays, as blocked working capital was affecting their ability to fulfil international orders and expand business operations.
\nTahir Manzoor Chaudhry said Pakistan could not overcome its trade imbalance without diversifying its export basket and reducing excessive dependence on a limited number of traditional products and markets.
\nHe said Pakistani exporters needed stronger trade diplomacy, better market intelligence, international quality certification and branding support to compete effectively in global markets.
\nTahir Manzoor also called for improving trade facilitation, simplifying customs procedures and removing logistical bottlenecks that increase delivery costs and make Pakistani products less competitive.<\/p>\n","protected":false},"excerpt":{"rendered":"
LAHORE: The Pakistan Industrial and Traders Associations Front (PIAF) has expressed serious concern over the widening trade deficit, warning that the growing imbalance between imports and exports is increasing pressure on foreign exchange reserves, undermining economic stability and prolonging the country\u2019s dependence on external borrowing. PIAF Chairman Faheemur Rehman Saigol, Senior Vice Chairman Nasrullah Mughal […]<\/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":["post-576725","post","type-post","status-publish","format-standard","category-business"],"yoast_head":"\n