S. M. Tanveer concerned over reliance on remittances and not exports for economic growth

LAHORE: Mr. S. M. Tanveer, Leader of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), has expressed concerns over reliance on remittances and debt-driven consumption, and not exports, for economic grwoth and development.

He highlighted the challenges facing Pakistan’s exports, citing an estimated $60 billion gap in potential exports.

In a statement, Mr. Tanveer noted that Pakistan’s export share in GDP has declined from 16% in the 1990s to 10.4% in 2024.

On the contrary, he said, Vietnam’s export-to-GDP ratio is 95%. Bangladesh, a country we used to look down on is around 20%. Thailand’s at 60%.

He identified high production costs, limited market access, low productivity, and inadequate infrastructure as key factors contributing to this issue.

“Pakistan’s exports are facing significant challenges, and it is imperative that we address these issues to unlock the country’s true potential,” Mr. Tanveer said. “We need to adopt a market-determined exchange rate, strengthen trade finance, improve logistics and compliance, and enhance trade agreements to boost our exports.”

Mr. Tanveer emphasized the need for a comprehensive strategy to promote exports and reduce reliance on imports. “We must work together to create a business-friendly environment, invest in infrastructure, and promote innovation and value addition in our export-oriented sectors,” he added.

The FPCCI leader urged the government to take concrete steps to address the challenges facing Pakistan’s exports and unlock the country’s potential for growth and development.