Senior business leader and leader of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) S. M. Tanveer has raised serious concerns over Pakistan’s growing dependence on remittances and debt-fueled consumption instead of strengthening exports as the backbone of economic growth.
In a statement, S. M. Tanveer highlighted that Pakistan is missing out on nearly $60 billion in potential exports, warning that the country’s weak export performance poses a major threat to sustainable economic development. He noted that Pakistan’s export-to-GDP ratio has sharply declined from around 16 percent in the 1990s to just 10.4 percent in 2024, reflecting structural weaknesses in the economy.
Drawing regional comparisons, Tanveer pointed out that Vietnam’s exports account for nearly 95 percent of its GDP, while Thailand stands at around 60 percent and Bangladesh has crossed 20 percent. He stressed that these countries have outperformed Pakistan by focusing on export competitiveness, productivity, and global market integration.
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The FPCCI leader identified high production costs, limited market access, low labor productivity, weak infrastructure, and compliance gaps as the primary obstacles holding back Pakistan’s export sector. According to him, without urgent reforms, Pakistan will continue to rely on remittances and borrowing rather than generating sustainable foreign exchange through trade.
“Pakistan’s exports are facing deep-rooted challenges, and it is imperative to address them to unlock the country’s true economic potential,” Tanveer said. He called for a market-determined exchange rate, stronger trade financing mechanisms, improved logistics and supply chains, and better compliance with international standards.
S. M. Tanveer also emphasized the importance of enhancing regional and global trade agreements, investing in infrastructure development, and promoting innovation and value addition across export-oriented industries. He urged policymakers to shift focus from short-term consumption-led growth to a long-term export-led economic strategy.
The FPCCI leader appealed to the government to take concrete and immediate steps to revive exports, create a business-friendly environment, and reduce Pakistan’s dependence on imports and external borrowing. He concluded that without a strong export base, sustainable growth and economic stability will remain out of reach.
