Businessmen sound alarm as deficit hits $25b

President of the Lahore Chamber of Commerce & Industry (LCCI) Faheemur Rehman Saigol has voiced concern over Pakistan's widening trade deficit, which crossed $25 billion during the first eight months (July-February) of fiscal year 2025-26, and urged the government to take urgent policy measures to stabilise the economy.

Referring to the latest data released by the Pakistan Bureau of Statistics (PBS), Saigol said the deficit signalled deep-rooted structural challenges within the economy. He warned that a deficit of such magnitude posed a serious threat to Pakistan's macroeconomic stability.

According to Saigol, the simultaneous decline in exports and surge in imports reflected structural weaknesses that required immediate policy intervention. He called on the government to revisit trade and industrial policies and formulate a comprehensive export-led strategy focused on diversification, industrial support and discouragement of non-essential imports.

The LCCI president also raised concerns over renewed inflationary pressures. Consumer Price Index (CPI)-based inflation rose to 7% on a year-on-year basis in February 2026, compared with 5.8% in January 2026 and 1.5% in February 2025.

He observed that escalating electricity tariffs, fuel prices and food costs were eroding consumers' purchasing power while increasing production costs for businesses. The higher cost of doing business, he said, was further straining domestic industry at a time when the external account remained under pressure. He urged the government to review the energy pricing framework and rationalise taxes and surcharges that, he said, were placing excessive burdens on both consumers and industry.

He called for a coherent and business-friendly economic roadmap aimed at reducing the trade deficit, controlling inflation, strengthening domestic industries and ensuring fiscal discipline.

Saigol reiterated that the Lahore Chamber of Commerce & Industry and the wider business community were ready to work with the government to address economic challenges and support efforts toward sustainable and inclusive growth.