Gohar Ejaz voices alarm over rising trade deficit

ISLAMABAD (Dunya News) – Gohar Ejaz, former caretaker federal minister for commerce and industry, has expressed grave concern over Pakistan’s rising trade deficit, warning that the country shows no clear signs of transitioning towards an export-led economy.

Speaking on the country’s economic performance, Ejaz described the expanding trade gap as a significant threat to national stability. He stressed that boosting exports was no longer optional but essential for safeguarding Pakistan’s economic future.

According to figures cited by Ejaz, the trade deficit increased by approximately five billion US dollars between July and February of the current fiscal year. During the same period, exports declined by 1.5 billion dollars compared with the previous year, while imports surged by 3.5 billion dollars.

He underlined that exports play a pivotal role in sustaining economic health, generating employment and reducing reliance on foreign borrowing. “An export-driven growth model is imperative,” he said, adding that the current trajectory reflects structural weaknesses in trade and industrial policy.

Ejaz argued that economic growth must be anchored in production and value-added exports rather than consumption-led expansion.

He maintained that accelerating the pace of economic activity, particularly in manufacturing and export-oriented sectors, would create jobs and strengthen foreign exchange reserves.

He further emphasised that increasing exports would help curb dependence on external loans, easing pressure on the country’s balance of payments. Sustainable and long-term economic stability, he added, should be prioritised in the prevailing circumstances.

Calling for exports to be treated as a matter of national economic security, Ejaz urged policymakers to adopt immediate corrective measures. He said that without a decisive shift towards export competitiveness, Pakistan risks prolonged financial vulnerability.