KARACHI: At a time when export shipments are slowing, a rare blame game has surfaced between the federal government and exporters, each accusing the other of responsibility for the country’s falling exports.
The issue came into the public spotlight on Thursday when Prime Minister Shehbaz Sharif, addressing the Pakistan Stock Exchange via video link, categorically expressed dissatisfaction with exporters’ performance despite what he described as “several incentives” extended in the budget.
“We have given incentives to the export sector, but its performance remains unsatisfactory,” the premier said, adding that while he did not wish to single anyone out, exporters had failed to deliver.
He noted that the government had provided extensive support long sought by the sector, including measures that raised unit prices, yet overall performance remained below expectations. Mr Sharif also said he had briefed the IMF managing director on Pakistan’s economic performance.
Soon after, former president of the Karachi Chamber of Commerce and Industry Jawed Bilwani issued a statement placing responsibility on the federal government to implement export-friendly policies. “Policy formulation and its operations are in the hands of the federal government — not the exporters,” he said.
Mr Bilwani, Coordinator of the All Pakistan Exporters Association Forum, said exporters were struggling for survival amid unprecedented challenges, including high manufacturing costs, lack of competitiveness, and the absence of a level playing field.
While supporting the prime minister’s call for higher exports and sustainable growth, he stressed that exporters could not be held accountable for structural problems beyond their control.
He highlighted that Pakistani exporters operate on narrow profit margins compared to regional competitors, face higher taxes than other businesses, and endure prolonged delays in refund payments without compensation. He added that arbitrary FBR deductions, liquidity pressures, and high operational costs were crippling the sector.
Mr Bilwani also criticised the imposition of taxes and duties on imported yarn under the Export Facilitation Scheme, saying it created additional liquidity pressures without benefiting the local yarn industry. He noted that several exporting industries had shifted operations abroad due to such hardships. Expressing grave concern over transporters’ strikes, he said the recent nine-day nationwide disruption caused massive losses, vessel shutouts, detention charges, and mounting demurrage.
He urged the government to establish an emergency cell at the Prime Minister’s Office to ensure reliable and competitive export logistics.
He further pointed to costly utilities, frequent outages of electricity, gas, and water, and capacity charges for IPPs as factors slowing export growth. He added that labour productivity was hampered by a lack of public transport and prolonged loadshedding.
Despite these challenges, Mr Bilwani emphasised that Pakistan’s export-oriented industries had invested heavily in modern technology, quality control, certifications, skilled manpower, and value addition to meet stringent global standards.
Published in Dawn, October 2nd, 2026
