Urgent Reforms Needed to Boost Pakistan Agricultural Exports

The All Pakistan Fruits and Vegetables Exporters, Importers, and Merchants Association (PFVA) is calling for a REVOLUTION in Pakistan’s economic policies, demanding drastic budgetary measures to SLASH production costs, skyrocket exports, and fuel unparalleled growth within the industry. The time for change is NOW!

Their powerful recommendations include sharply increasing taxes on finished goods and cutting duties on vital raw materials, especially for packaging and other essential imports. According to PFVA, the overbearing tariffs on these crucial raw materials are KILLING the potential of the food and agriculture sector, which is one of the cornerstones of Pakistan’s economy.

Provisional GDP data shows an alarming slowdown: Q1-FY25 saw a meager growth of just 0.9%, a stark decline from 2.3% in the same quarter last year, with the agriculture sector’s growth dropping from 8.1% to a mere 1.2%. The message is clear—Pakistan’s agriculture sector is in urgent need of help.

Waheed Ahmed, Patron-in-Chief of PFVA, emphasized that the key to saving this sector lies in cost-cutting and aggressive export growth. He stressed, “Reducing production costs and ensuring fair competition will help Pakistan DOMINATE global markets!”

One of PFVA’s most critical proposals is to SLASH import duties on plastic and paperboard packaging from a staggering 16% and 20% down to just 8-10%, with immediate exemptions for exporters. Furthermore, they advocate for eliminating duties for suppliers to exporters to reduce sky-high input costs.

To fuel local agricultural growth, PFVA demands an increase in the Regulatory Duty (RD) on imported tomato paste, pushing it from 20% to 40%, in order to incentivize manufacturers to source locally. With current customs duties and regulatory charges making imported paste cheaper than local alternatives, this change is essential for local farmers and businesses.

On the packaging front, PFVA is pressing for dramatic cuts in import duties on aseptic bags used for juice packaging, which are currently burdened by a crushing 20% customs duty, 6% additional duty, and 10% RD.

Additionally, they propose an urgent shift in Federal Excise Duty (FED) on fruit juices—from the final product stage to the import stage of aseptic packaging. This move will prevent widespread tax evasion, ensure FAIR taxation, and boost government revenues.

These reforms are a game-changer for Pakistan’s economy, aimed at recalibrating tariffs, attracting investment, and fortifying local manufacturing power. If enacted, they will pave the way for a THRIVING food processing industry and a massive boost in processed food exports.

PFVA is calling on policymakers to EMBRACE these proposals in the upcoming budget to ensure sustainable, LONG-TERM growth for the food and agriculture sector. The future is in their hands!