FPCCI Leader Atif Ikram Sheikh Warns of Trade Deficit Surge to $4.53 Billion MoM

Mr. Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce and Industry (), has expressed grave concern over the significant decline in Pakistan’s trade balance. The deficit widened sharply to $4.53 billion in June 2026 on a month-on-month basis.

Sheikh reiterated that had previously warned the government about plunging exports, which pose a critical threat to the country’s external account stability and foreign exchange reserves. According to data from the Pakistan Bureau of Statistics (PBS), exports fell by 16.73% to $2.24 billion in June 2026, while imports surged by 24.07% to $6.77 billion compared to the previous month.

The President termed the June 2026 trade figures a wake-up call for the government’s economic team. A nearly 17% drop in exports in a single month is not just a statistical decline but an indicator that export-oriented industries are under severe pressure. The high energy tariffs, interest rates, and unpredictable taxation environment have severely crippled Pakistan’s competitiveness in global markets.

The has urgently appealed to the government to rationalize energy costs, reinstate the Final Tax Regime (FTR) for exporters, and lower the policy rate to prevent widespread industrial closures and decline in exports. The cumulative trade deficit for FY26 reached a staggering $39.47 billion – a 21.57% year-on-year increase compared to FY25.

Mr. Saquib Fayyaz Magoon, SVP , highlighted the unsustainability of the current import-export gap. Ending the fiscal year with a trade deficit approaching $39.47 billion puts immense pressure on macroeconomic stabilization efforts.

Magoon stressed that the government must strike a balance – curbing luxury and non-essential imports while ensuring raw materials required by export manufacturers remain accessible without unnecessary regulatory hurdles.

Mr. Abdul Mohamin Khan, VP & Regional Chairman Sindh, emphasized the localized impact of deteriorating trade metrics on Pakistan’s largest industrial hub in Sindh. Industries are struggling due to high electricity tariffs, dilapidated infrastructure, and exorbitant land prices, making it impossible for manufacturers to scale up production.

Khan called upon provincial and federal governments to abolish redundant levies and establish fast-track business facilitation centers across Sindh to lower operational frictions. The leadership unanimously urged the Ministry of Finance and Commerce to engage with the business community immediately to devise a crisis-response strategy that transitions the economy from stabilization to an export-led growth model.