By Commerce Reporter
LAHORE, January 3 — The Lahore Chamber of Commerce and Industry on Saturday presented a doable set of proposals to enhance exports. Suggestions were given in the presence of Federal Secretary Commerce Jawad Paul, Federal Secretary Industries Saif Anjum, and Federal Secretary National Food Security Amir Mohyuddin.
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LCCI President Faheem ur Rehman Saigol welcomed them while Senior Vice President Tanveer Ahmed Sheikh, Vice Presidents Khurram Lodhi Vice President SAARCH Chamber Mian Anjum Nisar, former President Muhammad Ali Mian, DG TDAP Rafia Syed, Executive Committee members, Ministry of Commerce officials, and representatives of various trade and industrial associations were also present.
Federal Secretary Commerce Jawad Paul assured the LCCI president that their proposals would be implemented in letter and spirit, as they visited the Lahore Chamber with the objective of gaining first-hand knowledge about the issues being faced by the exporting sector.
He said that the Prime Minister has clearly instructed that exporters should be included in policymaking and their suggestions given priority. He said export growth must be led by the private sector, while the government’s role is to facilitate and provide policy support. He noted that exports declined in the first six months of the fiscal year, increasing the trade deficit, especially due to falls in the food and agriculture sectors, with rice being a key item that still has potential for improvement.
LCCI President Faheem ur Rehman Saigol said Pakistan is facing a sharp decline in exports and a dangerous increase in the trade deficit. He stated that in the first six months of this fiscal year, the trade deficit has exceeded 19 billion dollars and could reach 38 billion dollars by year-end if the trend continues. He warned that relying solely on remittances, which may reach 42 billion dollars, is not enough for a sustainable economy.
He highlighted a sharp drop in food and agricultural exports. According to the Pakistan Bureau of Statistics, food exports from July to November were 1.95 billion dollars, compared to 3.15 billion dollars last year, a fall of about 38 percent. Rice exports dropped from 1.5 billion dollars to 769 million dollars, vegetables from 110 million dollars to 66 million dollars, and oilseeds and nuts from 262 million dollars to 92 million dollars.
He said the main reasons for the decline include lack of policy focus, expansion of housing societies over agricultural land, lower per-acre production, recurring floods, and poor water management. He stressed the need for a Water Management Authority, use of hybrid seeds, mechanized and corporate farming, and protection of agricultural land.
He added that the livestock sector contributes 15 percent to GDP, but meat exports from July to November were only 215 million dollars. He noted that the global halal food market is worth around 3 trillion dollars, and Pakistan has strong potential to benefit. This requires better breeding of dairy and meat animals, removal of sales tax on milk and meat, and allowing value addition.
He welcomed the creation of the National Agri Food Security Authority and called for LCCI representation in it. He also emphasized reviewing free trade and preferential trade agreements, removing non-tariff barriers, active engagement of embassies, and market and product diversification. Currently, more than 60 percent of Pakistan’s exports are concentrated in a few sectors and 36 percent go to just four countries, while Africa, ASEAN, and Central Asia offer untapped potential.
He expressed concern over rising business costs, high policy rates, taxes, and energy prices, which are forcing local industries and multinational companies to move abroad, describing it as capital flight. He criticized the Sindh Infrastructure Development Cess as ineffective, noting that over 9 billion dollars has been collected since 1994 without visible results.
He called for restoration of the final tax regime for exporters, prevention of misuse of the Export Facilitation Scheme, timely payment of sales tax refunds, air freight subsidy for meat exporters, establishment of testing and certification labs through the Export Development Fund, and immediate construction of additional halls at the Lahore Expo Centre.
Mian Anjum Nisar spoke about water conservation and the establishment of banking channels in neighboring countries where Pakistani banks do not exist. He also spoke about the utilization of Pakistani-trained experts returning from China in the agriculture sector.
LCCI Senior Vice President Tanveer Ahmed Sheikh said that the FIR culture must be abolished. He added that heavy taxes and FBR’s arm-twisting are hurting exports.
Federal Secretary Commerce Jawad Paul said the government is reviewing free trade and preferential trade agreements, with one FTA already under review. He urged the business community to provide specific details on countries, products, and non-tariff barriers so the government can take direct and immediate action. Nine working groups have been formed under the Prime Minister’s direction to work on tax, energy, policy rate, and export financing. Of 1 trillion rupees allocated under the Export Financing Scheme this year, only 300 billion has been used in the first six months.
Federal Secretary Industries Saif Anjum said the government wants to move forward with an action plan, and LCCI’s role is key. The industrial policy has been issued with options related to policy rates and energy costs, and the business community should provide feedback. Economic stability has improved, and a revival in large-scale manufacturing is visible.
Federal Secretary National Food Security Amir Mohyuddin (via Zoom) said the government is seeking input from the business community for agricultural reforms. The seed sector regime has been changed and is moving toward self-regulation. Biotechnology and seed policies are being prepared for the first time. He emphasized industry cooperation to address diseases and non-tariff barriers affecting poultry and other agricultural exports. He announced the China-Pakistan Agri Investment Conference on January 19, where 114 Chinese companies will participate, providing major opportunities for Pakistani businesses.
LCCI President Faheem ur Rehman Saigol concluded by saying the Lahore Chamber will continue working with the government to support economic recovery, industrial revival, and sustainable export growth.
