NA panel told: Exports to suffer if domestic industry stays ignored
ISLAMABAD: The Ministry of Commerce (MoC) informed the National Assembly Standing Committee on Commerce on Friday that the country’s exports will continue to suffer if incentives are skewed in favour of domestic-oriented industries rather than export-oriented sectors.
Commerce Secretary Jawad Paul presented this position during a meeting of the committee, which discussed the decline in exports over the past four consecutive financial years.
Committee members, including Shaista Pervaiz Malik, observed that despite the government’s intensive efforts to boost exports, the desired results have not materialised, USD30 billion over the last four years. He added that a detailed briefing on structural and systemic issues had already been shared with the committee.
He further argued that when industries catering to the domestic market receive greater incentives than the export-oriented industries, it becomes unrealistic to expect growth in exports.
The Secretary also briefed the committee on the impact of the US-Iran conflict and the broader Middle East situation on Pakistan’s trade. He stated that both sea and air routes were severely disrupted, particularly through the Strait of Hormuz, resulting in increased transportation costs.
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He highlighted that the disruption had a direct impact on logistics through the UAE, noting that around 80 per cent of Pakistan’s trade with GCC countries is routed via Jebel Ali port. Most international shipping lines had suspended operations between Pakistan and the GCC in March, although some resumed in April.
Pakistan National Shipping Corporation (PNSC) oil tankers continued transporting petroleum products from Saudi Arabia and the UAE, while smaller commercial vessels of PNSC resumed operations between Karachi and Khorfakkan on May 18, 2026. Air logistics also recovered in April after experiencing a 30 per cent cancellation rate in March.
“Pakistan’s exports to the UAE, which had been growing by up to 23 per cent, declined by 22 per cent during the recent conflict,” he said.
Discussing trade with Afghanistan, the Commerce Secretary stated that the border closure in October 2025 resulted in a trade loss of approximately USD 1.10 billion. He added that the Gulf conflict had further impacted exports, with agricultural and food exports declining by USD 2 billion.
He maintained that the primary reason for the border closure was security concerns.
However, Committee Chairman Jawad Hanif Khan stressed that trade should be prioritised, arguing that Pakistan could significantly benefit from exports to landlocked Afghanistan.
On the decline in rice exports, the Secretary attributed the trend to India’s re-entry into the global rice market, offering lower-priced alternatives.
Committee member Farhan Chishti contended that Pakistani rice is of superior quality and alleged that Indian traders often sell Pakistani rice under Indian branding.
However, Director General (Commerce Ministry) Muhammad Ashraf clarified that Pakistani basmati rice commands higher prices in the global market, making such re-branding unlikely.
Responding to a question regarding the impact of the Afghanistan border closure on mango exports, Joint Secretary Maria Kazi stated that Afghanistan has never been a significant market for Pakistani mangoes. Instead, Iran imported approximately 14,000 tonnes of mangoes within a single month.
On imports, the Commerce Secretary noted that petroleum imports from Gulf countries increased during the conflict period.
He further explained that the closure of the Afghanistan border has created logistical challenges for trade with Central Asian states. Officials informed the committee that while exports previously reached Central Asia within 10 to 12 days via Afghanistan, the alternative route through Iran now takes 20 to 22 days.
Following the border closure, Pakistan has relied on routes through Iran and China. However, the lack of banking channels remains a major hurdle in trade with Iran.
The Secretary emphasised that Afghanistan, being a landlocked country, offers significant trade opportunities for Pakistan. He added that efforts are under way to strengthen economic cooperation and trade relations with Iran.
During the meeting, member Muhammad Nauman suggested a briefing on the Pakistan-Iran gas pipeline. The Commerce Secretary responded that the matter falls under the purview of the Ministry of Petroleum.
Chairman Jawad Hanif Khan noted that gas prices under the Iran import agreement are relatively high, while the Secretary added that negotiations are ongoing to expand barter trade arrangements with Iran.
The Committee approved the Copyright (amendment bill) 2026 and the Insurance Bill 2026(Government Bill). However, the committee deferred approval of the Trade Organisations (Amendment) Bill, 2026 moved by Dr Farooq Sattar.
Copyright Business Recorder, 2026