By Commerce Reporter
Pakistan’s exports are the backbone of its economy, generating foreign exchange, creating employment, and supporting industrial growth. However, exports have remained under pressure due to several structural and financial challenges. Addressing these issues requires coordinated efforts from the government, the State Bank, commercial banks, and the business community.
The views in the interview were expressed by Syed Salman Ali who is a seasoned entrepreneur and international trade expert with more than three decades of experience in exports and diversified business ventures. An MBA graduate with a strong background in global commerce, he has played a pivotal role in expanding Pakistan’s exports to over 34 countries, particularly through the internationally recognised JAMILA Henna brand. He has also diversified into rice exports, oriental perfumes, and the architecture and construction sectors. An active member of leading business organisations, Salman Ali has served in key positions at the Lahore Chamber of Commerce and Industry (LCCI) and the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), contributing to trade promotion and export development. Following are the excerpts from his interviews with The Tribune International:Â
Q1: Why are Pakistan’s exports declining?
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Answer: The decline in exports is mainly attributed to: High electricity, gas, and fuel costs. High interest rates and expensive financing. Limited product diversification and low value addition. Outdated industrial technology and low productivity. Supply chain and logistics inefficiencies. Import restrictions affecting the availability of raw materials. Weak global demand in key export markets. Compliance and quality challenges.
Q2: How are banking hurdles affecting exporters?
Answer: Banking constraints have become one of the biggest obstacles to export growth. Exporters face: Delays in opening and confirming Letters of Credit (LCs). Difficulty in obtaining export finance and working capital. High financing costs due to elevated interest rates. Delays in foreign exchange approvals for importing raw materials. Lengthy compliance procedures and documentation requirements. Limited access to trade finance, particularly for SMEs. These issues delay production, increase costs, and reduce Pakistan’s credibility with international buyers.
Q3: How can these banking challenges be resolved?
Answer: The following measures can significantly improve the situation: Ensure timely processing of export-related LCs.
Expand access to affordable export finance.
Improve foreign exchange availability for industrial imports. Digitize trade finance and banking documentation. Establish dedicated export facilitation desks in commercial banks. Strengthen coordination between the State Bank, commercial banks, and exporters. Create a fast-track mechanism to resolve banking-related export issues.
Introduce time-bound service standards for export banking transactions.
Q4: What broader reforms are needed to boost exports?
Answer: Provide competitive energy tariffs for export industries. Ensure policy consistency and political stability. Promote value-added manufacturing instead of raw material exports. Invest in technology, innovation, and workforce development. Improve logistics, ports, and customs efficiency. Diversify export products and explore new international markets. Encourage branding, quality certification, and compliance with global standards.
Conclusion
Pakistan has the potential to substantially increase its exports, but this requires removing structural impediments and creating an export-friendly financial ecosystem. A predictable banking system, affordable financing, stable policies, and improved industrial competitiveness are essential for transforming exports into a sustainable engine of economic growth. Timely reforms today will strengthen Pakistan’s position in global markets and contribute to long-term economic stability.
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