United Business Group (UBG) President and former FPCCI President Zubair Tufail has expressed concern that Pakistan’s trade deficit reached $10.8 billion in the first quarter of the current fiscal year. He said that although exports recorded a significant year-on-year increase in September 2026, the rapid growth in imports remains a major challenge to the country’s trade balance. He stressed that the government must adopt an immediate and comprehensive strategy to increase exports while effectively managing the import bill, as a persistently widening trade deficit could increase pressure on the country’s foreign exchange reserves and external payment obligations.

Zubair Tufail urged the government to reduce electricity, gas and other production costs to make export-oriented industries more competitive, facilitate the import of industrial raw materials and essential machinery, and ensure the timely payment of refunds to exporters. He said special attention should be given to increasing exports not only in textiles but also in IT, engineering, pharmaceuticals, rice, leather, sports goods, surgical instruments and other value-added sectors. He stressed that the responsibility for increasing exports should not be placed solely on exporters; rather, the government should also play an active role in expanding the country’s export base through trade delegations and effective international marketing. He further proposed that commercial counsellors posted at Pakistani embassies and consulates abroad should have clear export-promotion targets and be tasked with facilitating greater access to local markets. According to the Pakistan Bureau of Statistics, exports reached $2.94 billion in September, also up month on month, indicating further potential to expand the country’s export capacity.

He further said that, to control the trade deficit, the government, State Bank of Pakistan, and the private sector should jointly formulate a clear and practical “Export Growth Roadmap”, prioritizing long-term incentives for exporters, investment in the productive sector, domestic production of industrial raw materials, and the development of import-substitution industries. Zubair Tufail said that instead of imposing unnecessary restrictions on imports, the government should adopt a policy that allows the continued import of productive and industrial inputs while discouraging non-essential and low-priority imports. He also emphasized the need to further increase earnings from services, particularly IT and digital exports, so the deficit in merchandise trade can be partially offset and Pakistan can move toward reducing its trade deficit sustainably.