The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed concern over the widening trade deficit, warning that the growing gap could put additional pressure on Pakistan’s foreign exchange reserves.

FPCCI President Atif Ikram Sheikh said the trade deficit increased by 15.13 percent during the first quarter of FY2026-27, reaching $10.792 billion compared with $9.374 billion during the same period last year.

The deficit also increased in September, rising to $3.55 billion from $3.35 billion in September 2025, according to Pakistan Bureau of Statistics data cited by FPCCI.

Sheikh said the widening trade gap was a concern because continued reliance on imports could increase pressure on the country’s foreign exchange position and create balance of payments risks.

He linked the situation to the high cost of doing business, saying expensive financing, electricity capacity charges and petroleum levies are making it difficult for local manufacturers to compete with regional producers.

According to Sheikh, these costs are also limiting industrial productivity and value addition, which could affect Pakistan’s ability to strengthen exports.

FPCCI has called on the Ministry of Finance and State Bank of Pakistan to reduce the policy rate to single digits to make working capital more affordable for manufacturers.

The federation has also urged the government to rationalize electricity and gas tariffs and provide targeted relief on inland logistics costs to reduce supply chain expenses.

Sheikh said these measures are needed to support exports and prevent further pressure on Pakistan’s external position.