FPCCI Voices Concern Over Widening Trade Deficit in June -

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed concern over the sharp widening of Pakistan’s trade deficit in June, urging the government to introduce urgent reforms to strengthen exports and improve industrial competitiveness.

In a statement, FPCCI President Atif Ikram Sheikh said exports stood at US$2.24 billion in June 2026, down 16.7% from May 2026 and 9.6% lower than in June 2025.

Imports, meanwhile, rose to US$6.77 billion during the month, increasing 24.1% on a monthly basis and 26.3% year-on-year.

As a result, the trade deficit widened to US$4.53 billion, up 63.8% from May and 57.1% compared with June last year.

For the full fiscal year 2025-26, exports declined 6% from the previous year, while imports increased 8.1%, leading to a 22% rise in the overall trade deficit.

Sheikh said the decline in exports and increase in imports reflect the challenges facing Pakistan’s industrial and manufacturing sectors.

He attributed the weakening export performance to high interest rates, expensive energy, heavy taxation and an uncompetitive business environment.

He described the growing trade deficit as a major challenge for the economy, saying urgent measures are needed to reverse the trend.

While acknowledging the government’s efforts to achieve macroeconomic stability, he stressed that greater support must now be extended to the industrial and export sectors.

The FPCCI chief called for reforms in the energy sector, financing costs and the tax system, saying sustained export growth would not be possible without addressing these structural issues.

He also urged the government to promote import-substitution industries and value-added exports, ensure the timely payment of exporters’ tax refunds, and encourage exports from the information technology, agricultural value-added and engineering sectors.

Sheikh said a strong export sector is essential for sustainable economic growth and urged the government to accelerate business-friendly reforms.

He reaffirmed FPCCI’s commitment to working closely with the government to boost exports and support Pakistan’s economic development.-ERMD

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