PBF for urgently operationalise PHDEC to support agricultural, horticultural exports

KARACHI: The Pakistan Business Forum (PBF) recommends that the federal government urgently operationalise the Pakistan Horticulture Development and Export Company (PHDEC) to effectively support agricultural and horticultural exports.

This institution must be strengthened through the appointment of a new board of directors comprising professionals with proven experience in agriculture policy, international trade, and export development, so that it can function as a results-oriented body rather than a dormant entity.

PBF chief organiser, Ahmad Jawad briefed that in view of the repeated floods, climate shocks, and financial stress faced by farmers and exporters, PBF strongly recommends that the normal tax regime imposed through the Finance Bill 2024 be postponed for at least two years, until 2028. During this interim period, the earlier system of one percent tax on export remittances should be restored as a full and final tax to provide certainty, liquidity, and relief to the export sector at a critical time.

The Forum also stresses the need to rationalise electricity tariffs for agricultural tube wells, as the current cost structure has significantly increased input costs, reduced farm profitability, and discouraged productivity.

Affordable energy for irrigation is essential if Pakistan is to increase per-acre yields and sustain export-oriented agriculture.

To improve productivity and crop quality, Jawad urges the federal government to direct the Federal Seed Authority to immediately expedite the approval of new seed varieties that have already been submitted and are pending clearance. Delays in seed approvals are directly limiting innovation, yield improvement, and Pakistan’s ability to meet international quality standards.

In order to effectively compete with Indian rice exports, particularly in global markets, the government should actively support rice exporters by facilitating the use of cargo trains to reduce high inland freight costs.

The Forum also recommends the permanent withdrawal of the minimum export price regime and a strategic shift towards promoting premium Basmati rice based on Pakistan’s natural strengths such as superior grain length, aroma, and cooking quality.

At the same time, strict quality control, grading, and traceability systems must be enforced, while exporters should be provided export credit at competitive rates without minimum thresholds to enable small and medium exporters to participate.

For the promotion of kinnow and mango exports, PBF recommends allowing exports to the Iranian market or through barter arrangements.

Trade should be permitted in Pakistani rupees, and a formal mechanism should be established in coordination with the Iranian Ministry of Commerce to streamline payments, logistics, and market access. Similarly special arrangements may be made to tap central Asian states through NLC reefer logistics on competitive cargo’s for enhancement of Mango and kinnow volumes.

The Forum also highlights that the Potohar region of Punjab, particularly Chakwal, has witnessed substantial growth in olive cultivation, yet Pakistan lacks adequate olive oil extraction infrastructure and is still not a member of the International Olive Council. The government should facilitate the installation of at least two modern olive extraction plants in Chakwal on a public-private partnership basis to support value addition, reduce wastage, and promote olive oil exports.

Potato exports represent another significant opportunity, and PBF recommends that the government establish a dedicated export mechanism for Central Asian states and the Russian Federation.

A predictable and structured export framework will encourage farmers to expand potato cultivation on a yearly basis and stabilize prices through assured export demand.

To address rising input costs, the Forum urges the government to enforce fertiliser manufacturers to explore local production of DAP or introduce viable alternative nutrient solutions that can overcome DAP deficiencies. Reducing dependence on imported DAP is critical to lowering prices and ensuring timely availability for farmers.

Pakistan Business Forum also strongly emphasizes that the overall cost of doing business in the agriculture sector must be revisited seriously if export targets are to be achieved. Farmers need access to basic competitive tools such as affordable inputs, energy, logistics, finance, and technology. Subsidised tractors alone are not a solution; sustainable export growth requires systemic reforms that improve productivity, reduce costs, and enhance competitiveness across the agricultural value chain.

Copyright Business Recorder, 2026