The Pakistan Businessmen and Intellectuals Forum (PBIF) and the Businessmen Panel (BMP) of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) have sounded a critical alarm. They warn that the nation's industrial base is on the brink of collapse due to a catastrophic 38 percent decline in exports. This sharp downturn has triggered widespread factory shutdowns and massive job losses across key manufacturing sectors.
A Crisis in Manufacturing and Exports
The stark warning was issued jointly by PBIF President Mian Zahid Hussain and BMP Chairman Mian Anjum Nisar. They pinpointed the textile sector, which is the backbone of Pakistan's exports, as being in a state of severe distress. The leaders highlighted that the country's exports have fallen to a concerning $24.7 billion, while imports have surged to $54.8 billion. This imbalance has resulted in a daunting trade deficit exceeding $30 billion, placing immense strain on the national economy.
The business leaders did not mince words, stating that the government's current economic policies are directly responsible for this alarming situation. They criticized the authorities for failing to provide a competitive environment for exporters, who are struggling with high production costs, energy shortages, and a complex regulatory framework. The consistent decline in export volumes is not a temporary blip but a trend signaling deeper structural problems.
Root Causes and Immediate Consequences
Several interconnected factors have converged to create this export crisis. High energy tariffs, particularly for electricity and gas, have made Pakistani goods uncompetitive in the global market. Persistent inflation has increased the cost of raw materials and operational expenses. Furthermore, a shortage of liquidity and challenging conditions for obtaining credit have crippled the ability of manufacturers to operate at full capacity or fulfill large international orders.
The immediate consequence of this export decline is visible on the ground. Numerous industrial units, especially in the textile and garment sectors, have been forced to close their doors. This has led to a direct and devastating loss of employment for hundreds of thousands of workers, exacerbating poverty and social unrest. The contraction in industrial activity also reduces government revenue from taxes and duties, creating a vicious cycle that further weakens the fiscal position.
Urgent Calls for Government Intervention
Mian Zahid Hussain and Mian Anjum Nisar presented a clear set of demands to the government to avert a full-scale industrial meltdown. Their primary call is for an immediate and significant reduction in energy prices for the export-oriented industries. They argue that without affordable power and gas, Pakistan cannot hope to regain its foothold in international markets.
Additionally, the business leaders urged for a drastic simplification of the tax system and the removal of bureaucratic hurdles that delay exports and increase costs. They emphasized the need for policy stability, where long-term export strategies are not disrupted by short-term fiscal measures. The panel stressed that the government must engage in continuous dialogue with real stakeholders from the business community to formulate pragmatic and effective economic policies.
The message from the BMP and PBIF is unequivocal: the time for half-measures is over. The 38 percent drop in exports is a red flag that cannot be ignored. Either the government takes swift, decisive, and supportive action to rescue the manufacturing and export sectors, or it risks presiding over the collapse of a critical pillar of Pakistan's economy, with dire implications for millions of livelihoods and national economic stability.
