Pakistan’s Current Account returned to deficit during fiscal prompting concerns from the Chairman of the Exchange Companies Association of Pakistan (ECAP), Malik Muhammad Bostan. He said the country’s $139 million current account deficit reflects mounting pressure from rising imports, although record workers’ remittances helped prevent a more severe deterioration in the external financial position.
Current Account Deficit Reflects External Sector Challenges
Speaking on Pakistan’s economic outlook, Malik Muhammad Bostan said the increase in imports, combined with stagnant exports, pushed the Current Account back into deficit. He noted that strong remittance inflows from overseas Pakistanis played a critical role in supporting the balance of payments and maintaining external stability.
He emphasized that sustainable economic growth cannot be achieved without significantly expanding exports and strengthening Pakistan’s competitiveness in international markets.
Current Account Improvement Depends on Export Growth
Bostan urged the government to adopt export-friendly policies by reducing the cost of doing business, lowering energy tariffs for exporters, ensuring timely tax refund payments, and creating a more competitive environment for exporters.
He described the growth in rice exports as a positive development, noting that Pakistani Basmati and non-Basmati rice continue to attract strong demand in international markets. According to him, the rice sector is generating valuable foreign exchange and has the potential to contribute even more if provided with additional incentives and facilitation.
He also stressed the importance of supporting other export-oriented industries, including textiles, leather, engineering goods, information technology, and agriculture, warning that continued import growth without corresponding export expansion would place further pressure on Pakistan’s foreign exchange reserves.
Bostan Rejects Perception of Nationwide Fuel Shortage
Commenting on the petroleum sector, Bostan said reports suggesting a nationwide fuel shortage were misleading. He claimed that some Oil Marketing Companies (OMCs) had slowed fuel supplies while seeking higher dealer margins, creating concerns about an artificial shortage.
He added that Pakistan has more than 4,000 registered petrol pumps, while the number of illegal and unregistered filling stations remains undocumented. According to Bostan, these unauthorized outlets are openly selling smuggled petrol and diesel, resulting in significant losses to the national exchequer.
Digital Fuel Monitoring System Strengthened
Bostan said that under the directives of the Oil and Gas Regulatory Authority (OGRA), nearly 4,000 registered petrol stations have already been equipped with digital fuel meters. However, he claimed that many Oil Marketing Companies have been reluctant to bear the cost of replacing older fuel dispensers with modern digital units.
He explained that digital dispensers help prevent manipulation of fuel prices, while older machines can still be tampered with, allowing illegal profits. He urged authorities to accelerate the replacement of outdated equipment to improve transparency across the petroleum retail sector.
Government Urged to Enhance Monitoring and Boost Exports
According to Bostan, all registered petrol stations submit daily sales and inventory data to their respective Oil Marketing Companies, which then share the information with OGRA and the Federal Board of Revenue (FBR) for monitoring. He added that each registered fuel station has also received two mobile devices under the digital monitoring system to track fuel sales and stock levels in real time. Petrol pumps found with discrepancies between reported and actual inventories are subject to fines and legal action.
He further stated that Punjab is currently experiencing the highest demand for petroleum products, although sufficient fuel stocks are available nationwide.
Concluding his remarks, Bostan called on the government to take strict action against the sale of smuggled fuel, accelerate the installation of digital fuel dispensers, strengthen monitoring mechanisms, and implement comprehensive measures to increase exports and improve Pakistan’s Current Account position.
