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KARACHI, October 4, 2026: United Business Group (UBG) President and former FPCCI President Zubair Tufail has called for greater focus on domestic production of industrial raw materials and the development of import-substitution industries to help reduce Pakistan’s widening trade deficit.
He expressed concern over the trade deficit reaching $10.8 billion in the first quarter of the current fiscal year. He said exports increased significantly in September 2026, but the rapid rise in imports remained a major challenge for the country’s trade balance.
Zubair Tufail urged the government to adopt an immediate strategy to increase exports and manage the import bill. He warned that a persistent trade deficit could put additional pressure on foreign exchange reserves and external payment obligations.
He called for lower electricity, gas and other production costs to improve the competitiveness of export-oriented industries. He also urged the government to facilitate imports of industrial raw materials and essential machinery and ensure timely payment of exporters’ refunds.
Zubair Tufail said Pakistan must expand exports beyond traditional sectors such as textiles. He identified IT, engineering, pharmaceuticals, rice, leather, sports goods and surgical instruments as sectors with potential for higher exports and greater value addition.
He also said exporters should not be solely responsible for increasing the country’s exports. According to him, the government should actively support export growth through trade delegations and stronger international marketing.
He proposed setting clear export-promotion targets for commercial counsellors working at Pakistani embassies and consulates abroad. These officials, he said, should help Pakistani businesses gain greater access to international markets.
According to the Pakistan Bureau of Statistics, Pakistan’s exports reached $2.94 billion in September 2026. Exports also increased on a month-on-month basis, indicating further potential for expanding the country’s export capacity.
Zubair Tufail further proposed that the government, State Bank of Pakistan and private sector jointly develop a practical “Export Growth Roadmap.”
The roadmap should focus on long-term incentives for exporters, investment in productive sectors, domestic production of industrial raw materials and the development of import-substitution industries, he said.
He stressed that the government should avoid unnecessary restrictions on productive imports. Instead, it should ensure continued access to industrial inputs and machinery while discouraging non-essential and low-priority imports.
Zubair Tufail also called for greater efforts to increase Pakistan’s services exports, particularly in IT and digital services. He said higher services earnings could help offset part of the merchandise trade deficit and support a more sustainable improvement in the country’s external balance.
