Pakistan’s Economic Revival Gains Global Acknowledgment: Commerce Minister

ISLAMABAD, (UrduPoint / Pakistan Point News - 19th Apr, 2025) Federal Minister for Commerce Jam Kamal Khan on Saturday said that Pakistan’s economy is on a path of consistent improvement, owing to recent structural reforms, international recognition of economic measures and the unwavering support of the business community.

He was addressing at the Lahore Chamber of Commerce and Industry (LCCI), said a release issued here.

LCCI President Mian Abuzar Shad presented his welcome address, while SAARC Chamber Vice President Mian Anjum Nisar, former LCCI President Muhammad Ali Mian, former Senior Vice President Ali Hussam Asghar, Former Vice President Faheem ur Rehman Saigol, TDAP Chief Executive Officer Faiz Ahmed Chadhar, Director General Rafia Syed and LCCI Executive Committee also spoke on the occasion.

The commerce minister said that although the country faced significant economic challenges until a few months ago, the past 18 months have seen noticeable improvements.

He said that even global institutions like the IMF acknowledge Pakistan’s economic reforms and recovery efforts. The large-scale participation of foreign delegates in events like the HEMS Expo and Mineral Expo is a strong indication of growing international confidence in Pakistan, he added.

The minister said that Prime Minister Shehbaz Sharif’s personal involvement and focus have led to the resolution of many key issues, while the collaborative approach of the business community during difficult times has been commendable.

Jam Kamal Khan said that the Export Finance Scheme (EFS) program is being tailored to benefit the business sector and reforms are being shaped through constant consultation with stakeholders. He appreciated the Lahore Chamber’s proactive liaison with the government, calling it a positive sign for future policymaking.

The minister revealed that the Prime Minister personally participated in B2B meetings during international visits, reflecting the government’s commitment to promoting trade. He said the Export Development Fund (EDF) is being restructured and TDAP has undergone considerable institutional improvements.

He acknowledged that exports are still largely confined to a few products and regions. There is immense untapped potential in areas like East Africa and other emerging markets.

He shared that his meeting with the Afghan Commerce Minister helped resolve key trade-related matters and underlined that Afghanistan is a crucial corridor for gaining overland access to Central Asia.

A new trade policy is also being formulated and for the first time, sector-specific meetings have been held regarding tariffs, which will be taken up with the Tariff board.

In his address, LCCI President Mian Abuzar Shad welcomed the government’s economic revival efforts but pointed out the continuing challenges.

Despite several positive indicators, he revealed that Pakistan witnessed a trade deficit of $17.9 billion during the first nine months (July–March) of the current fiscal year 2024–25, which is five percent higher than the same period last year.

Mian Abuzar stressed that exports cannot increase unless the problems of the industrial sector are resolved.

He identified several pressing issues facing the industry, including the devaluation of the rupee, high energy tariffs, the imposition of Maximum Demand Indicator (MDI) charges on closed industries, exorbitant land prices in industrial estates and heavy duties and taxes on raw materials and intermediate goods. These factors have significantly increased the cost of doing business.

He further said  that Pakistan’s export revenue has not seen substantial growth due to the lack of diversification into value-added products over time. If the goal is to boost exports, support industrialization and attract investment, then the government must provide cheaper electricity and gas to industries, ensure single-digit financing rates and urgently improve the tariff structure. Such measures, he said, are essential to improve the Ease of Doing Business in the country.

Mian Abuzar also pointed out that 68 percent of Pakistan’s exports are limited to textile, leather and rice sectors, while the country holds immense potential in halal food, pharmaceuticals, information technology, engineering goods, surgical instruments and sports goods. He reiterated that the LCCI has consistently advocated exploring new markets. At present, 58 percent of Pakistan’s exports are restricted to just 10 countries.

He highlighted the significant untapped trade potential in Africa, ASEAN nations and the Central Asian republics. Africa, for instance, imports goods worth $700 billion annually, but Pakistan’s share is only $1.8 billion. ASEAN countries import goods worth $1.7 trillion, while Pakistan’s share stands at a mere $1.7 billion. Similarly, Central Asia’s total imports amount to $111 billion and Pakistan’s share is just around $226 million.

Mian Abuzar urged the Ministry of Commerce to ensure that Pakistan’s Commercial Counselors, posted in high-potential trade destinations, prepare market intelligence reports every six months and share them with all chambers of commerce across the country.

SAARC CCI Vice President and former President of the Lahore Chamber, Mian Anjum Nisar, said that ongoing global tariff wars offer a significant opportunity for Pakistan’s exporters and the country must focus on capitalizing on these developments.

He urged policymakers to implement swift measures to reduce operational costs, including energy tariffs and other overheads, in order to enhance the competitiveness of Pakistani products in the global market.