Karachi, July 24, 2024 – The Korangi Association of Trade and Industry (KATI) has raised significant concerns over the government’s ambitious target of achieving $60 billion in exports within the next three years. In a recent statement, KATI President Qandhari highlighted the substantial challenges posed by high production costs and heavy taxation on the export sector.
Qandhari emphasized the urgent need for immediate measures to address these issues, warning that without intervention, the export industry could face a severe crisis. He specifically called on the government to reduce production costs, particularly in critical areas such as electricity, gas, and interest rates, which are currently burdening exporters.
While expressing support for Prime Minister Shehbaz Sharif’s directive to boost exports, Qandhari stressed the importance of creating a conducive environment for exporters to achieve this goal. He pointed out that the persistent delays in tax refunds by the Federal Board of Revenue (FBR) have further compounded the difficulties faced by the industrial sector, leading to liquidity issues and hampering their ability to reinvest in their businesses.
Despite these challenges, KATI maintains that Pakistan’s export potential is substantial and can exceed the $60 billion target with the right policies in place. The association cited the recent growth in IT exports as a positive example, highlighting how targeted policies and support can lead to significant increases in export figures. Qandhari emphasized the need to replicate this success in other key sectors such as textiles, rice, surgical instruments, leather, fruits, and vegetables.
KATI underscored the importance of resolving longstanding issues faced by industrialists to unlock their full potential and contribute effectively to the country’s export growth. This includes addressing infrastructure bottlenecks, ensuring consistent and affordable energy supplies, and providing timely tax refunds.
In addition to reducing production costs, KATI also called for enhanced government support in terms of market access and trade facilitation. This includes negotiating favorable trade agreements, reducing bureaucratic red tape, and providing exporters with the necessary tools and resources to compete effectively in the global market.
Qandhari concluded by urging the government to engage in meaningful dialogue with industry stakeholders to develop a comprehensive strategy for achieving the export targets. He reiterated that with the right support and policies, Pakistan’s export sector has the potential to drive significant economic growth and development.
The challenges highlighted by KATI reflect the broader issues faced by Pakistan’s industrial sector, and addressing these concerns will be crucial for the country to realize its ambitious export goals. As the government moves forward with its plans, close collaboration with industry bodies like KATI will be essential to ensure that the policies implemented are effective and aligned with the needs of exporters.