Facing steep production costs and tough regional competition, Pakistani exporters have urged the federal government to negotiate improved bilateral trade agreements to bridge the gap with competitors like India and Bangladesh, who currently benefit from preferential access in key international markets.
The demand was raised during a high-level consultative meeting chaired by Federal Minister for Commerce Jam Kamal Khan on Wednesday. The session brought together prominent industrialists, leading exporters, and senior government officials—including virtual participation from Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry, Minister of State for Finance and Revenue Bilal Azhar Kayani, and Coordinator to the PM on Commerce Rana Ihsaan Afzal Khan.
Key Issues & Business Recommendations
- Market Access & Preferential Deals: Business leaders urged the Ministry of Commerce to identify strategic international markets where India and Bangladesh hold preferential trade advantages and actively negotiate comparable or better access for Pakistani products.
- Escalating Production & Energy Costs: Exporters voiced strong concerns over high electricity tariffs, the captive power gas levy, provincial infrastructure levies, and delayed tax refunds, which are severely undermining industrial competitiveness. Officials from the Petroleum Division provided clarifications on the gas levy mechanism during the session.
- Global Logistics & Financial Flexibility: Highlighting ongoing international shipping disruptions, port bottlenecks, and strict banking restrictions, representatives called for extended flexibility in payment settlement periods to navigate global supply chain delays.
- Livestock & Meat Export Hurdles: Representatives from the meat sector cited challenges regarding Foot-and-Mouth Disease (FMD), stringent international sanitary standards, and border restrictions limiting access to lucrative Gulf markets. Minister Jam Kamal assured exporters that Prime Minister Shehbaz Sharif is personally overseeing livestock development, disease control, and value-added export initiatives.
A Positive Step Forward
Despite the operational hurdles, business leaders commended the Export-Import Bank of Pakistan (EXIM Bank) for its new financing scheme, praising it as a vital initiative to enhance liquidity and help Pakistani enterprises scale globally.
The Ministry of Commerce is now finalizing a comprehensive set of recommendations based on the session’s outcomes to present to the Prime Minister for immediate policy intervention.
