Karachi 18 May 2026: Mian Zahid Hussain, President Pakistan Businessmen and Intellectuals Forum & All Karachi Industrial Alliance, Chairman National Business Group Pakistan, Chairman Policy Advisory Board FPCCI, and Former Provincial Minister Information Technology, expressed grave concern today over the deteriorating economic landscape of the country, marked by a historic surge in the trade deficit and mounting pressure on the balance of payments. He highlighted that the trade deficit has crossed the alarming threshold of $4 billion in April 2026, the highest level recorded in nearly four years, primarily driven by a 28 percent month-on-month surge in the import bill which has now reached $6.55 billion.
Mian Zahid Hussain noted that the global oil shock, exacerbated by ongoing Middle East conflicts, has nearly tripled the country’s energy import costs, creating a situation that current demand-management tools are failing to contain.He pointed out that while imports have ballooned, the export sector remains stagnant and capacity-constrained, with exports for April 2026 standing at $2.48 billion, rose by 14.03% YoY, showing only a marginal growth that fails to offset the massive import requirements. In the first ten months of the current fiscal year (10MFY26), the cumulative trade deficit has expanded by over 20 percent to $31.98 billion compared to $26.59 billion in the corresponding period of the previous year. He emphasized that the decline in global commodity prices, particularly in rice, and intensified regional competition have further squeezed Pakistan’s export revenues, leading to a significant widening of the current account deficit which stood at $1.17 billion in the first half of the fiscal year.Mian Zahid Hussain further stressed that the reliance on foreign remittances is facing new threats due to geopolitical tensions and the reported expulsion of thousands of Pakistani workers from the Gulf region, which could jeopardize the vital $2.5 billion to $3.5 billion monthly inflow, vital for Pakistan’s economy. He warned that the foreign exchange reserves remain vulnerable to external pressure and the increasing cost of external debt servicing are pushing the economy toward a precarious position.
He remarked that the current fiscal year’s growth projection of 3.5 percent remains under threat unless immediate and radical structural reforms are implemented to diversify the export base and reduce the heavy dependence on imported fuels.To address these challenges, Mian Zahid Hussain proposed a multi-pronged strategy focusing on energy security and the rapid transition to renewable energy sources to slash the oil import bill. He urged the government to provide direct incentives for the textile and value-added sectors to enhance competitiveness in the global market and to aggressively pursue new markets in Central Asia and Africa.
He also called for the establishment of a high-level economic task force to negotiate better terms for external debt and to ensure the protection of Pakistani laborers abroad. Mian Zahid Hussain concluded that without a shift toward an export-led growth model and a reduction in the cost of doing business, the country will continue to remain trapped in a cycle of deficits and debt.
