Export of raw materials causing billions of dollars loss to economy: Abuzar Shad
By Commerce Reporter
LAHORE: Because of proactive measures by TDAP, visa issues for traders participating in the UAE exhibition have been resolved.
It was told by the Chief Executive Trade Development Authority of Pakistan Faiz Ahmed while speaking at the Lahore Chamber of Commerce and Industry. LCCI President Mian Abuzar Shad, Vice President Shahid Nazir Chaudhry and DG TDAP Rafia Syed also spoke on the occasion while LCCI Executive Committee Members Ahsan Shahid, Syed Salman Ali, Karamat Ali Awan, Shouban Akhter, Waqas Aslam, Irfan qureshi and Asif Malik were present in the meeting.
Read also: TDAP invites LCCI to be part of trade delegations, exhibitions
He said that TDAP has successful organized trade exhibitions in Saudi Arabia and planning in Ethiopia soon. He urged the LCCI members to participate actively in these initiatives.
Faiz Ahmed Chadhar said that to enhance trade diplomacy, Pakistani commercial counselors and consuls generals posted abroad have been re-designated as Trade and Investment Officers with their performance now being reviewed after every three months. Inefficient officers will be served notices and may face recall if necessary.
Calling for the need for value addition in exports, he said that despite being among the top ten producers of mangoes and guavas, Pakistan has not fully capitalized on its potential due to limited processing facilities. He added that there are only two mango pulp processing plants in the country.
He stressed the importance of promoting non-traditional export sectors and said that TDAP has allocated 10% of the Export Development Fund for SMEs and another 10% specifically for women entrepreneurs. He cited examples of globally successful brands that emerged from the SME sector and urged Pakistan to adopt a similar approach.
Faiz Ahmed Chadhar said that stable and predictable trade policies can help businesses to plan for long-term growth. He said that high industrial production costs is a major barrier to increasing exports and called for measures to reduce these expenses.
He also talked highly about Pakistan’s vast untapped mineral and metal resources, which, if fully utilized, could generate billions in foreign exchange. He assured LCCI members that TDAP is actively working to restore the zero-rating facility on local yarn in the upcoming budget to support textile exports.
LCCI President Mian Abuzar Shad said that best marketing strategies are the key tool for export growth. He urged the government to focus on value-added exports instead of raw material exports.
He said that export of raw materials causing billion of dollars loss to the economy. Providing examples, he said that Pakistan exports salt to India at extremely low rates, which India processes and re-exports for billions of dollars. Similarly, gypsum is exported to India at just $17 per ton, while its freight cost alone is $15 per ton. He suggested either banning gypsum exports or setting a minimum price of $50 per ton to ensure fair profitability.
of various Pakistani produces in raw shape is occurring loss of $billions to the national economy. We have to shift our focus towards value addition.
He also mentioned the potential of the automobile sector, suggesting that locally manufactured vehicles could significantly reduce Pakistan’s import bill and boost foreign exchange earnings.
Calling for policy continuity, Mian Abuzar Shad said that rising business costs, expensive energy and lack of long-term policies have been major hurdles in export growth. He said that 68% of Pakistan’s exports come from just three sectors including textiles, leather and rice, whereas sectors such as Halal food, pharmaceuticals, IT, engineering, surgical instruments and sports goods hold immense untapped potential.
LCCI Vice President Shahid Nazir Chaudhry said that Pakistan’s trade share remains extremely low in major global markets. He urged TDAP to facilitate Pakistani exhibitors’ participation in major trade fairs scheduled for 2025 and 2026 in these regions.
Mian Abuzar Shad also raised concerns over visa delays affecting Pakistani exporters. He mentioned that over 20 LCCI-affiliated companies had booked stalls for an exhibition in Dubai but were facing difficulties in obtaining visas. He urged TDAP to work closely with embassies and trade missions to resolve such issues, ensuring smooth participation for Pakistani businesses in international trade.
