Pakistan Industrial and Traders Associations Front (PIAF) Chairman Faheemur Rehman Saigol, who also serves as president of the Lahore Chamber of Commerce and Industry (LCCI), has expressed serious concern over the continued decline in the country's exports. He stated that this trend poses a significant challenge to Pakistan's economic ambitions and long-term growth objectives.
Structural Issues Undermine Export Competitiveness
In a joint statement with PIAF Senior Vice Chairman Nasrullah Mughal and Vice Chairman Tahir Manzoor Chaudhry, Saigol noted that the country's export performance remains far below expectations despite repeated commitments to accelerate export-led growth. The decline in exports during the current fiscal year reflects deep-rooted structural issues that continue to undermine the competitiveness of Pakistani products in international markets.
Saigol observed that exports remain the most sustainable source of foreign exchange earnings and are critical for maintaining external-sector stability. However, rising production costs, expensive energy, high financing charges, and a complicated taxation system have significantly weakened the ability of local industries to compete with regional rivals.
High Energy and Financing Costs Hurt Exporters
He said that industrial consumers in Pakistan continue to face some of the highest electricity and gas tariffs in the region, placing exporters at a serious disadvantage. At a time when competing economies are providing incentives and facilitating exporters, Pakistani manufacturers are struggling to manage escalating operational costs. The PIAF chairman noted that the persistence of high borrowing costs has further constrained industrial growth and investment. Many exporters, particularly small and medium-sized enterprises, are finding it increasingly difficult to obtain affordable financing for modernization, capacity expansion, and technological upgrades.
Tax Structure Needs Urgent Reform
Saigol added that the existing tax structure also requires urgent review. Multiple taxes, withholding deductions, and cumbersome compliance requirements increase the cost of doing business and divert resources away from productive activities. Simplification of tax procedures and reduction in unnecessary burdens would help improve industrial efficiency and export competitiveness.
Nasrullah Mughal stated that external challenges have further complicated the situation. Regional geopolitical tensions, disruptions in traditional trade routes, and uncertainty in international markets have adversely affected export prospects. However, he emphasized that domestic structural weaknesses remain the primary obstacle to sustained export growth.
Call for Export Diversification
Tahir Manzoor Chaudhry said that Pakistan must move beyond its traditional dependence on low-value products and focus on diversification of exports. Greater attention should be given to value-added manufacturing, engineering goods, information technology services, pharmaceuticals, processed foods, and other high-potential sectors capable of generating higher export earnings.
The PIAF leaders stressed that achieving ambitious export targets requires more than policy announcements. It demands practical measures aimed at reducing production costs, ensuring policy consistency, and creating an enabling business environment. They called for comprehensive reforms in the energy, taxation, and regulatory sectors to support industrial growth and encourage investment.
Need for Better Market Access and Innovation
Faheemur Rehman Saigol said that exporters also need better market access, stronger trade diplomacy, and effective support in identifying emerging opportunities in global markets. Investment in innovation, quality enhancement, branding, and technological advancement is essential for improving Pakistan's position in international value chains.
The PIAF leadership urged the government to engage closely with the business community in formulating export policies and addressing the challenges faced by exporters. They emphasized that sustainable economic growth, employment generation, and external-sector stability depend largely on the country's ability to expand and diversify its exports.
