Make Exports Competitive — Only Way to Curb Soaring Trade Deficit: Gohar Ejaz

Chairman Economic Policy and Business Development (EPBD) Gohar Ejaz has voiced deep concern over Pakistan’s widening trade deficit, warning that the growing imbalance poses a serious threat to the country’s external account stability.

He said the trade deficit surged by 33.8 percent year-on-year in the first quarter of FY26, reaching $9.43 billion, as exports fell 3.9 percent to $7.6 billion while imports jumped 13.9 percent to $17.03 billion.

Gohar Ejaz noted that the decline in exports was mainly driven by a 27 percent fall in the food group, while imports in transport and textile groups skyrocketed by 142 percent and 44 percent, respectively.

“This widening trade gap underscores deep structural flaws in our economy,” he remarked, adding that Pakistan’s export base remains narrow, low-value, and undiversified, while imports are largely consumption-driven and inelastic.

He stressed that export-led growth anchored in competitiveness, productivity, innovation, and market diversification is the only sustainable solution to the persistent external imbalances.

“Without making our exports competitive and expanding our product and market base, Pakistan will continue to face recurring balance-of-payments crises and fall back into boom-and-bust cycles,” Gohar warned.

He urged urgent policy measures to enhance industrial productivity, encourage innovation, and support export diversification, emphasizing that only a competitive export sector can secure long-term economic stability for the country.