Pakistan’s export sector is urging the government to introduce more favorable trade policies and improve access to international markets as businesses struggle with rising production costs, energy prices and growing competition from regional rivals, particularly India and Bangladesh.
During a high-level consultation chaired by Federal Commerce Minister Jam Kamal Khan at the Ministry of Commerce, exporters called for stronger bilateral trade arrangements to help Pakistani products compete more effectively in global markets. The meeting brought together representatives from different industries, senior government officials and policymakers to discuss the challenges facing the country’s export-oriented businesses.
Trade Agreements Seen as Key to Export Growth
Exporters stressed that India and Bangladesh benefit from preferential trade arrangements in several markets, giving their products a competitive advantage. They urged the government to identify these markets and explore opportunities for negotiating improved trade terms for Pakistani goods.
Better market access could help Pakistani businesses attract international buyers, expand their customer base and strengthen the country’s position in global supply chains. Industry representatives also emphasized the importance of diversifying export destinations and reducing dependence on a limited number of markets.
High Energy Costs Put Pressure on Industries
One of the major concerns raised by exporters was the increasing cost of energy and industrial production. Rising electricity and gas prices, along with the levy on gas supplied to captive power plants and provincial infrastructure charges, are putting additional pressure on manufacturers.
Higher operating expenses make it difficult for Pakistani companies to offer competitive prices in international markets. Exporters therefore called for measures to reduce the cost of doing business and create a more supportive environment for industrial growth.
The government acknowledged these concerns, with the commerce minister recognizing that energy prices, freight charges, taxation and changing international trade conditions were affecting export performance.
Delayed Tax Refunds and Banking Restrictions Remain Challenges
Exporters also highlighted delays in tax refunds, which can restrict cash flow and make it harder for businesses to finance production and fulfil new orders.
Officials from the Federal Board of Revenue discussed initiatives aimed at improving refund processing and expanding digital invoicing. However, business representatives emphasized the need for practical improvements that allow companies to receive their outstanding refunds without unnecessary delays.
Banking regulations and international payment settlement requirements were other important issues discussed during the consultation. Exporters called for greater flexibility in payment timelines, particularly when shipping delays and disruptions in global logistics affect their ability to complete transactions.
Improving these processes could help businesses manage working capital more effectively and maintain stronger relationships with overseas customers.
Shipping Disruptions and Port Efficiency Under Scrutiny
International shipping delays and rising transportation expenses are creating additional difficulties for Pakistani exporters. Delays in the movement of goods can increase costs, disrupt delivery schedules and weaken the confidence of international buyers.
Industry representatives called for better port facilitation and more effective coordination among the relevant authorities. They also stressed that export growth requires reliable logistics infrastructure and regulations that can accommodate disruptions in international trade.
EXIM Bank Financing Offers Encouragement
Exporters welcomed the financing initiative introduced by the Export-Import Bank of Pakistan, describing it as a positive step towards improving access to financial resources.
Affordable and accessible export financing can help businesses purchase raw materials, invest in equipment, increase production and enter new markets. For smaller exporters in particular, suitable financing arrangements can play an important role in supporting expansion.
Nevertheless, industry representatives stressed that financing support must be accompanied by improvements in energy costs, taxation, logistics and market access to deliver stronger results.
Livestock and Meat Exporters Face Market Access Barriers
The livestock and meat industry also raised concerns about difficulties in accessing Gulf markets. Foot-and-mouth disease, international sanitary requirements and border restrictions continue to create obstacles for businesses seeking to increase exports.
Commerce Minister Jam Kamal Khan highlighted the government’s interest in developing the livestock sector through disease control, better breeding practices, investment and the promotion of value-added products.
Plans for a dedicated board led by the private sector were also discussed as part of efforts to support livestock development and improve the sector’s export potential.
Addressing animal health requirements and strengthening compliance with international standards will be essential if Pakistan wants to expand its meat and livestock exports.
Mineral and Surgical Instruments Sectors Seek Modernization
Representatives from the mineral sector highlighted restrictions affecting mining explosives and concerns over withholding taxes. These issues, they argued, can affect production activities and increase the financial burden on businesses.
Meanwhile, representatives of the surgical instruments industry called for greater investment in technology, workforce training and industrial modernization.
Pakistan’s surgical instruments sector has opportunities to strengthen its international position, but maintaining competitiveness requires continuous improvements in product quality, manufacturing processes and compliance with global standards.
Investment in advanced machinery and skilled workers could help local manufacturers move towards higher-value products and meet the changing requirements of international customers.
Government to Prepare Recommendations for the Prime Minister
During the meeting, the commerce minister stressed the need to move beyond general discussions and develop specific, workable solutions for exporters.
Minister of State for Finance and Revenue Bilal Azhar Kayani also encouraged government departments to document industry concerns and provide clear responses. The objective is to turn the issues raised by businesses into actionable recommendations for consideration by Prime Minister Shehbaz Sharif.
The Ministry of Commerce is expected to consolidate sector-specific and broader business concerns before presenting its recommendations. Further consultations were scheduled for October 21 to review unresolved issues and finalize proposals.
What Pakistan Needs to Strengthen Its Export Competitiveness
Pakistan’s ability to compete with India and Bangladesh will depend on more than negotiating better trade agreements. Although improved market access is important, exporters also need a business environment that supports efficient production, timely payments and consistent product quality.
Several measures could help achieve this goal:
- Negotiate better market access: Identify markets where competitors receive preferential treatment and explore mutually beneficial trade arrangements.
- Reduce production costs: Review energy tariffs and other industrial charges that increase the cost of locally manufactured goods.
- Speed up tax refunds: Improve administrative processes so exporters can access their funds more efficiently.
- Improve trade finance: Expand access to suitable financing and streamline banking procedures for international transactions.
- Strengthen logistics: Improve port operations, shipping coordination and payment flexibility during supply chain disruptions.
- Invest in technology and skills: Encourage modern manufacturing, workforce development and higher-value production.
- Meet international standards: Strengthen quality assurance, animal disease control and regulatory compliance to improve access to demanding export markets.
- Expand export destinations: Develop new markets and reduce reliance on a narrow range of products and buyers.
Conclusion
Pakistan’s exporters are calling for a coordinated strategy to address the structural problems that limit their ability to compete internationally. Better trade agreements with key markets could create new opportunities, but their benefits will remain limited unless businesses can also operate with manageable production costs, reliable logistics and efficient financial systems.
The government’s upcoming policy recommendations will be an important opportunity to translate industry concerns into concrete reforms. If trade negotiations are combined with improvements in taxation, energy pricing, financing, technology and regulatory procedures, Pakistan could strengthen its export base and create better opportunities for sustainable industrial growth.
Ultimately, improving export competitiveness requires consistent cooperation between the government and the private sector, with a shared focus on productivity, innovation, market diversification and long-term economic development.