Pakistan’s trade deficit has ballooned to a staggering $39.5 billion, a four-year high that signals deepening trouble for the national economy. The alarming figure was highlighted by SM Tanveer, a prominent industrialist and leader of the United Business Group (UBG), who is calling for drastic government intervention to rescue the flailing export sector.
Tanveer painted a grim picture of the economic landscape, noting a dangerous divergence in trade flows. While imports have surged by 8 percent, exports have simultaneously contracted by 6 percent. He cautioned that continuing on this trajectory poses a direct threat to the country’s long-term financial stability.
The Bankruptcy of Borrowed Growth
In a sharp critique of the current economic model, Tanveer dismissed the notion that lasting stability can be built on foreign loans, debt-financed overseas investment, or remittances. He argued that genuine, sustainable recovery hinges entirely on expanding Pakistan’s export footprint and sharpening its competitive edge in global markets.
“Economic independence cannot be outsourced,” Tanveer stated, emphasizing that the foundation must be laid with domestic production and international trade, not financial engineering.
Energy Costs Crushing Competitiveness
A primary obstacle strangling exporters, according to Tanveer, is the crippling cost of energy. He explained that exorbitant electricity tariffs have rendered Pakistani goods uncompetitive on the world stage. To level the playing field, he urged the government to immediately align local power rates with those offered in neighboring countries, a move he believes is critical for regional market survival.
Paralysis by High Interest RatesBeyond energy, Tanveer identified the prolonged high policy rate as a key factor that has brought industrial and economic growth to a virtual standstill. He argued that manufacturers are no longer capable of absorbing expensive financing, a reality that is severely limiting both investment and production capacity across vital sectors.
He issued a direct appeal to the State Bank of Pakistan to slash the policy rate, insisting that lower borrowing costs are essential to provide relief to struggling businesses and to reignite industrial expansion. Furthermore, he called on the Prime Minister and Finance Minister to pivot away from short-term fixes and commit to deep, structural economic reforms.
Tanveer concluded with a stark warning: without a comprehensive and effective strategy to contain the swelling trade deficit, the window for timely policy action will close. He stressed that immediate steps to support exports and revive industrial growth are not just necessary, but urgent to fortify Pakistan’s crumbling economic foundations.
