LAHORE, NOV 8 /DNA/ – The Ferozepur Road Industrial Association (FRIA) has advocated the need for raising the country’s tax base so that tax-to-GDP ratio improves from current poor level.
FRIA senior vice chairman Shehbaz Aslam urged the trade officers to explore opportunities to diversify exports of goods and services in their respective areas, asking them to meet the challenges faced by Pakistan in European markets.
He said that country’s major export markets did not see any significant growth in importing goods from Pakistan in the financial. He also suggested the ministry to devise strategies for promotion of Pakistani products, calling upon trade officers to take advantage of opportunities offered by China-Pakistan Economic Corridor (CPEC).
Shahbaz Aslam said that Pakistan’s exports to the US and the UK, two high-priced markets, have seen substantial growth in the first quarter of the current financial year. However, exports to China have sharply declined during the same period, according to country-specific data released by the Trade Development Authority of Pakistan (TDAP).
The UK has overtaken China to become the second-largest export market for Pakistani products.The US remains the top export market for Pakistan, with exports to the country crossing the $1 billion mark in the first quarter. Exports stood at $1.454 billion, compared to $1.309 billion in the same quarter of the previous fiscal year, registering an 11 per cent increase.
The UK ranked second, importing $580 million worth of Pakistani goods, reflecting a 14 per cent growth compared to $509 million last year.Exports to China, however, saw a decline of 23 per cent, falling to $559 million from $730 million in the same quarter of the previous fiscal year.
In addition to the US and UK, Germany, the United Arab Emirates (UAE), the Netherlands, Spain, Afghanistan, and Italy were also major export markets, with exports to each of these countries surpassing or nearing the $300 million mark.
Exports during the July-September period of FY25 were recorded at $7.875 billion, compared to $6.901 billion in the same period last year.Textile exports were the largest contributor, totalling $4.786 billion in the first three months of the current fiscal year.
The FRIA SVC pointed out that administrative measures to curb imports, leading to raw material shortage for the industry and resultantly lower production, were the main reason for the plunge while the slowdown in global demand amid monetary tightening was another reason, he said.
He said that Pakistan has remained a potential market for foreign investors, who still have plans to make fresh investment in the country, but they have continued to wait for the return of economic stability. He highlighted uncertainty in the rupee-dollar parity as one of the major concerns of foreign investors.
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