Pakistan Exports Plunge, Trade Deficit Surges H1 FY26

LAHORE: Pakistan’s export performance has weakened sharply in H1 FY26, pushing the trade deficit beyond $19 billion and exposing deep structural flaws in agriculture and food exports, business leaders warned Saturday as the Lahore Chamber of Commerce and Industry (LCCI) presented urgent reform proposals to federal officials. LCCI President Faheem ur Rehman Saigol said the deficit could hit $38 billion by year-end without corrective action, stressing that even $42 billion in remittances cannot replace sustained export growth. Official data showed food exports plunging 38% to $1.95 billion (Jul–Nov) from $3.15 billion last year, with rice falling to $769 million from $1.5 billion, vegetables to $66 million from $110 million, and oilseeds/nuts to $92 million from $262 million. Saigol blamed policy neglect, conversion of farmland into housing, low productivity, recurring floods, and poor water management. He demanded a Water Management Authority, wider hybrid seed use, mechanised/corporate farming, and farmland protection. Livestock (15% of GDP) generated only $215 million in meat exports despite a $3 trillion global halal market — he called for better breeding, removal of sales tax on milk/meat, and value addition. On trade policy, he urged review of FTAs/PTAs, elimination of non-tariff barriers, stronger commercial diplomacy via embassies, and diversification into Africa, ASEAN, and Central Asia. Over 60% of exports remain concentrated in few sectors, 36% to just four countries. Federal Secretary Commerce Jawad Paul assured exporters’ active role in policymaking per PM instructions, acknowledging H1 export decline and food/agri weakness, but noting rice recovery potential. Saigol also highlighted rising business costs (policy rates, taxes, energy) driving capital flight and criticised the Sindh Infrastructure Development Cess (>$9 billion collected since 1994 with no visible results). The meeting, attended by Federal Secretaries Industries and National Food Security, TDAP DG, and trade bodies, focused on practical implementation of the Provincial Industrial Policy 2025–2030 and SCCI representation on provincial boards/committees.