Steep export decline underscores urgent need for structural reforms and export revival measures

By Commerce Reporter

LAHORE — The Lahore Chamber of Commerce & Industry has expressed serious concern over the sharp decline in Pakistan’s exports, as reported in the latest data showing a 20.41 percent year-on-year and 4.26 percent month-on-month fall in exports for December, with the trade deficit swelling to USD 19.20 billion in the first half of the current financial year.

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Senior Vice President, Mr. Tanveer Ahmed Sheikh, stated that the continued contraction in exports for multiple consecutive months reflects deep-rooted structural challenges facing Pakistan’s export sector. Declines in key segments such as textiles and food exports are particularly alarming, as these sectors form the backbone of the country’s foreign exchange earnings and employment.

He emphasized that exporters are grappling with high energy costs, elevated interest rates, inconsistent taxation policies, delayed refunds, and declining global competitiveness, which are eroding Pakistan’s position in international markets. “Without urgent corrective measures, the pressure on foreign exchange reserves and the overall balance of payments will intensify,” he warned.

The Senior Vice President urged the government to immediately introduce a comprehensive export revival package, including:

• Competitive and regionally aligned energy tariffs for export-oriented industries

• Simplification of tax procedures and expedited refunds

• Enhanced access to affordable financing

• Incentives for value-added exports and market diversification

• Policy consistency to restore exporter confidence

He further stressed that export-led growth is the only sustainable path toward economic stability. “Pakistan must shift from short-term fixes to long-term structural reforms that enhance productivity, reduce the cost of doing business, and promote industrial expansion,” he added.

The Lahore Chamber reaffirmed its commitment to working closely with the government and all stakeholders to develop practical, growth-oriented solutions aimed at reversing the export decline and putting Pakistan back on a sustainable economic growth trajectory.

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