BMP Warns of Industrial Collapse as Pakistan’s Exports Drop by up to 38 Percent

By Dr. Ansab Ali
Lahore, Pakistan
LAHORE: The Businessmen Panel (BMP) of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has issued a stark warning over the sharp decline in Pakistan’s exports, blaming weak and inconsistent government policies for failing to support domestic industries and exporters.
Former FPCCI President and Chairman of the Businessmen Panel, Mian Anjum Nisar, said the current trajectory poses a serious threat to Pakistan’s trade balance, the stability of the national currency, and the broader economy.
Addressing business leaders, Mian Anjum Nisar expressed deep concern over recent export data, revealing that Pakistan’s exports have declined by 36 to 38 percent, with food and rice exports hit particularly hard. “These figures are extremely alarming and reflect deep-rooted policy failures. Exporters are struggling to remain competitive internationally while grappling with rising costs and excessive regulatory burdens,” he said.
According to official figures, food exports from July to November fell to $1.95 billion, down from $3.15 billion in the same period last year. Rice exports alone declined from $1.5 billion to $769 million, marking a sharp 49 percent drop.
Mian Anjum Nisar said the decline reflects structural weaknesses across Pakistan’s trade, agricultural, and industrial sectors. He identified high production costs, soaring energy tariffs, and a complex and unpredictable tax regime as key factors behind the downturn. “Electricity tariffs continue to rise, energy costs remain uncompetitive, and taxation policies lack consistency. Under such conditions, competing in global markets becomes nearly impossible,” he said.
He also highlighted mounting stress in the agricultural sector, noting that per-acre yields of wheat, rice, and cotton have declined over the past two years. He attributed this trend to inadequate investment in research and development, inconsistent policies, smuggling, and hoarding. These challenges, he said, have directly undermined export capacity.
“The textile sector, which contributes around 60 percent of Pakistan’s total exports, is particularly vulnerable,” he warned. “Declining cotton output and deteriorating quality are hurting value addition and weakening our position in international markets.”
Criticizing the government’s approach to industrial and export incentives, Mian Anjum Nisar said short-term relief measures and marginal adjustments to power tariffs are insufficient. He called for comprehensive, long-term reforms, including the removal of exporters from the Final Tax Regime, prompt clearance of tax refunds, and rationalization of energy costs.
He also condemned the Sindh government’s infrastructure cess, stating that exporters have paid approximately $9.15 billion over recent years with little transparency regarding its utilization. “Businesses are being forced to bear heavy costs without accountability, which further raises export prices and erodes competitiveness,” he said.
Warning of wider economic consequences, the BMP chairman said a sustained decline in exports would put severe pressure on the Pakistani rupee, fuel inflation, and increase production costs. “If exports continue to fall, currency depreciation is inevitable. That will trigger inflation and create a vicious cycle harming both industry and ordinary citizens,” he cautioned.
Highlighting the importance of small and medium enterprises (SMEs), Mian Anjum Nisar said these businesses form the backbone of Pakistan’s export economy but face disproportionate challenges in accessing affordable financing and navigating regulatory requirements. Strengthening SME support, he said, is essential to reversing the export downturn.
He further criticized the government’s failure to address structural inefficiencies in logistics, energy supply, and industrial support systems, warning that without a clear long-term strategy, Pakistan will continue to lag behind regional competitors such as Bangladesh, India, and Vietnam, which have improved infrastructure, boosted productivity, and provided consistent incentives to exporters.