Faheem Saigol urges govt to rationalise energy tariffs for export-oriented industries
ISLAMABAD, FEB 22: /DNA/ – The Pakistan Industrial and Traders Associations Front (PIAF) has voiced serious concern over the sharp decline in non-textile exports and the simultaneous surge in food imports, calling the latest trade figures a clear indication of deep-rooted structural weaknesses in the country’s export and agricultural sectors.
Citing data released by the Pakistan Bureau of Statistics, PIAF Chairman Faheemur Rehman Saigol, who is also LCCI President, said non-textile exports dropped by 17.32 per cent to $7.286 billion during the first seven months of the current fiscal year compared to $8.812 billion in the corresponding period last year, mainly due to a steep fall in agriculture-based and value-added products.
Faheem Saigol said the most alarming decline was recorded in rice exports, which plunged by over 40 per cent in value to $1.305 billion, while export volumes shrank by nearly 33 per cent to 2.439 million tonnes. The simultaneous drop in quantity and value reflects weaker global demand, lower international prices and domestic competitiveness challenges. Although the government has announced a Rs15 billion subsidy package to stabilise the rice sector, he maintained that short-term relief measures cannot replace long-term reforms focused on productivity enhancement, quality improvement and diversification of export markets.
PIAF Senior Vice Chairman Nasrullah Mughal noted that while certain non-agricultural segments such as engineering goods and cement recorded modest growth, the gains were insufficient to offset heavy losses in agriculture. Engineering exports rose by around 5.85 per cent, supported by increased shipments of industrial machinery, transport equipment and auto parts, whereas cement exports posted nearly 10 per cent growth in value terms despite logistical constraints and border disruptions affecting regional trade routes. The leather and footwear sectors showed mixed performance, with marginal improvement in leather garments but significant declines in canvas footwear and raw leather exports, underscoring the urgent need to shift towards higher value-added manufacturing and branding.
Expressing further concern, PIAF vice chairman Tahir Manzoor Chaudhry highlighted that raw food exports plunged by 35.21 per cent to $2.988 billion during July-January, compared to $4.613 billion a year earlier. In contrast, the country’s food import bill surged by 19.27 per cent to $5.502 billion, driven largely by higher imports of sugar, palm oil and tea. Sugar imports witnessed an extraordinary spike to over 308,000 tonnes from just over 2,000 tonnes in the same period last year, reflecting emergency measures to address domestic shortages and stabilise retail prices that have fluctuated sharply across major cities.
Palm oil imports also rose significantly in both value and quantity, indicating growing dependence on imported edible oils. Saigol said the widening gap between falling food exports and rising food imports exposes serious deficiencies in agricultural planning, supply chain management and policy consistency. He warned that continued reliance on imports to bridge domestic production gaps will further strain foreign exchange reserves and increase the trade deficit.
The PIAF chairman stressed that exporters are facing mounting challenges, including high electricity and gas tariffs, costly financing, exchange rate volatility and delays in tax refunds, all of which are eroding Pakistan’s competitiveness in global markets. He urged the government to rationalise energy tariffs for export-oriented industries, ensure prompt refund payments, modernise the agriculture sector through improved technology and research support, and formulate a comprehensive export diversification strategy focusing on engineering, technology-based and value-added products.
Faheem Saigol said that without structural reforms, policy stability and a business-friendly environment, the downward trend in exports may persist in the coming months, deepening economic vulnerabilities and undermining industrial growth across Pakistan.
