Widening trade deficit causes alarm
Large industries contribute heavily to revenue collection and job creation, any change in their growth directly impacts government and business sentiment. photo: file
Korangi Association of Trade and Industry (KATI) President Muhammad Ikram Rajput has expressed deep concern over Pakistan's widening trade deficit, warning that it has reached alarming levels.
In a statement released on Friday, he pointed out that the trade deficit surged to $3.34 billion in September 2025, marking an increase of 46% compared to the same period of last year. "The economy is under severe pressure," he noted, adding that exports declined 11.7% to $2.5 billion, while imports rose 14% to $5.85 billion.
Highlighting the challenges faced by industrialists, the KATI president said that the rising cost of production, particularly the continuous increase in electricity tariffs, had become the biggest obstacle for export-oriented industries. He warned that the trend was severely affecting the competitiveness of Pakistani products in the global market.
Rajput urged the government to immediately reduce the policy rate to lower the cost of doing business and help revive industrial activity. He also called for urgent consultations between the government, traders and industrialists to formulate a comprehensive strategy aimed at stabilising the national economy.