It has been a year since the launch of the Uraan Pakistan project, which named exports as a top national priority. Yet, over this period, Pakistan’s export industry has faced a roller-coaster journey, ultimately leading to the declaration of an export emergency.

The emergency is justified. With a gas levy on captive power plants, irrational taxation policies, and uncompetitive energy tariffs, one has to ask: under such measures, which country can realistically compete in exports? The trade numbers provide the answer.

In the first half of FY2026, Pakistan’s trade deficit exceeded USD 19 billion, the highest in four years (see figure below). Exports have steadily declined (month-on-month) over the past three years, while imports continue to rise. If this trend persists, the trade deficit is projected to reach USD 40 billion by year-end.

Policymakers may not appear alarmed, as the widening deficit is being offset by rising remittances, which are now treated as the default current account strategy. In reality, exports were never given top national priority. Had the industry’s concerns been addressed earlier, an export emergency would not have been necessary, nor would exports have lost momentum. If these issues remain unresolved, there will soon be no need for such announcements, because there may be no exports left.

Now that the country is officially in a state of emergency, the government must put the house in order.

The........

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