KATI concerned over widening trade deficit

KARACHI: President of the Korangi Association of Trade and Industry (KATI), Muhammad Ikram Rajput, has expressed deep concern over the country’s widening trade deficit, warning that it has reached an alarming level.

He said Pakistan’s trade deficit surged to $3.34 billion in September 2025, marking an increase of around 46 percent compared to the same period last year. “The economy is under severe pressure,” Rajput noted, adding that exports declined by 11.7 percent to $2.5 billion, while imports rose by 14 percent 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, has become the biggest obstacle for export-oriented industries. He warned that this trend is severely affecting the competitiveness of Pakistani products in the global market.

Rajput urged the government to immediately reduce the policy interest 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 stabilizing the national economy. “The growing trade deficit has now become a national issue,” Rajput cautioned. “If timely measures are not taken, it could pose a serious threat to the country’s financial stability.”

He emphasized that boosting exports through concrete and sustainable measures is the need of the hour to restore investor confidence and strengthen the economic foundation.