Pakistan launches Strategic Trade Policy Framework for export-led growth

Pakistan is preparing its Strategic Trade Policy Framework for 2026–31, which aims to advance an export-first policy orientation. The country's current-account deficit narrowed from $814 million in June to $328 million in July, an improvement supported by $3.63 billion in workers’ remittances. However, customs data for July showed that while exports rose 10.4% year-on-year, imports increased by 18.9%, resulting in a merchandise trade deficit of almost $4 billion.

The new framework seeks to strengthen exports while managing import demand to prevent the recreation of external imbalances. The challenge lies in distinguishing between finished goods imports and necessary machinery, raw materials, and components that build productive capacity and export competitiveness.

Regional stability and trade are impacted as Pakistani exports rely heavily on Afghan and Iranian markets, while the Middle East crisis is dampening global demand and raising costs.