By SKM
March 3, 2026
ISLAMABAD: Pakistan’s escalating trade deficit has become a source of serious concern for economic experts and policymakers, with former caretaker Federal Minister Gohar Ijaz cautioning that the trend poses significant risks to the country’s financial stability. Speaking on the current economic situation, he highlighted the urgent need for an export-driven strategy to counter the growing imbalance in trade.
According to Gohar Ejaz, Pakistan’s trade deficit increased by $5 billion between July 2025 and February 2026. During this period, the country’s exports declined by $1.5 billion compared to the previous year, while imports surged by $3.5 billion, exacerbating the gap. He warned that such trends, if unchecked, could undermine economic growth and threaten national economic security.
Gohar Ejaz stressed that exports are a key driver of sustainable economic growth. “An increase in exports is not just desirable but essential,” he said. “Boosting export activity will create employment opportunities, reduce reliance on foreign borrowing, and stabilize the economy in the long term.”
The former minister further noted that despite repeated calls for an export-oriented economy, there is little evidence of concrete policies that prioritize exports over other economic measures. He urged the government to make export promotion a top national priority and align macroeconomic policies to support export-led growth.
According to him, enhancing exports will also strengthen Pakistan’s balance of payments, help maintain currency stability, and mitigate the risks posed by rising debt. “In the current economic climate, where fiscal pressures and external vulnerabilities are high, an export-led approach is critical for sustainable and resilient growth,” he added.
Experts agree that with global trade dynamics changing rapidly, Pakistan cannot rely solely on domestic consumption or imports to drive economic growth. Strategic steps such as improving manufacturing competitiveness, facilitating trade logistics, and exploring new export markets are vital for narrowing the trade deficit and ensuring long-term economic stability.
Gohar Ejaz’s comments underline a growing concern among economists that without significant structural reforms and export-focused policies, Pakistan’s trade imbalance may continue to widen, potentially affecting inflation, employment, and overall economic health. Ends
