ISLAMABAD, FEB 15: The Pakistan Industrial and Traders Associations Front (PIAF) has welcomed the government’s recent export promotion initiatives announced by Prime Minister Shehbaz Sharif at the Top Exporters Award Ceremony 2024–25, terming them a positive and much-needed step toward easing the cost pressures faced by Pakistan’s industrial and export sectors. At the same time, PIAF has stressed that sustained export growth will require deeper structural reforms, particularly in the power sector, taxation and value-addition.
In a statement issued on Friday, PIAF Chairman Faheemur Rehman Saigol, Senior Vice Chairman Nasrullah Mughal and Vice Chairman Tahir Manzoor Chaudhry appreciated the government’s decision to reduce export refinance rates, cut electricity tariffs for industries and lower wheeling charges under a special relief package. The leadership said these measures reflect the government’s recognition of the challenges faced by exporters in a highly competitive regional and global environment.
PIAF Chairman Faheemur Rehman Saigol said that high energy costs, expensive financing and policy uncertainty have eroded the competitiveness of Pakistani exports over the years. He noted that the reduction in electricity tariffs by Rs 4.04 per unit and the lowering of wheeling charges would help bring down production costs, although Pakistan’s industrial power tariffs remain higher than those of regional competitors such as India and China. He added that further rationalisation of energy pricing is essential if Pakistan is to compete effectively in international markets.
Faheem Saigol also welcomed the government’s move to reduce export refinance rates, stating that cheaper credit would allow exporters to improve cash flows, invest in modernisation and enhance productivity. However, he cautioned that short-term relief packages should not be reversed due to fiscal or IMF-related pressures, as policy inconsistency discourages long-term investment and planning.
Senior Vice Chairman Nasrullah Mughal said that export earnings are far more sustainable for the economy than reliance on external borrowing and rollovers from friendly countries. He expressed concern that exports have been declining as a source of foreign exchange, while imports continue to rise, widening the trade deficit. Mughal pointed out that Pakistan’s export basket remains narrow and overly dependent on low value-added textiles and primary goods, making it vulnerable to global shocks and changing trade dynamics.
He urged the government to place greater emphasis on value-addition, diversification of exports and development of new sectors such as engineering goods, information technology and emerging technologies including artificial intelligence. According to Mughal, encouraging higher value exports would not only boost foreign exchange earnings but also create skilled employment and strengthen the industrial base.
Vice Chairman Tahir Manzoor Chaudhry said that while symbolic measures such as the announcement of blue passports for leading exporters may recognise their contribution, the government should also focus on broader facilitation for businesspersons and citizens facing increasingly restrictive visa regimes abroad. He stressed that ease of travel is critical for exporters seeking new markets, attending trade fairs and building international partnerships.
Tahir Manzoor Chaudhry further highlighted the urgent need for structural reforms in the power sector, noting that uniform tariffs, capacity payments to independent power producers and rising subsidies have placed a heavy burden on the economy and consumers. He said inefficiencies in the sector continue to be passed on to industry through high tariffs, undermining competitiveness and investment.
PIAF leadership also acknowledged the growing importance of remittances, which have surpassed export revenues in recent months. While appreciating overseas Pakistanis for their contribution, they emphasized that a balanced economic strategy must focus on strengthening exports alongside encouraging remittance inflows.
PIAF reaffirmed its support for the government’s efforts to stabilise the economy and promote exports, but called for consistent, transparent and long-term policies. The association expressed its willingness to work closely with the government to address structural bottlenecks, improve the business environment and place Pakistan on a sustainable path of export-led growth.
