Pakistan had a trade deficit of PKR 237.4 billion in October 2016 due to higher imports than exports. Imports rose 3.5% to PKR 421 billion while exports increased only 2.1% to PKR 183.7 billion. The key causes of Pakistan's trade deficit include high imports of energy and decreased developmental expenditures. To reduce the deficit and develop exports, Pakistan needs to transition from competing based on price to producing innovative new products using more efficient processes.