Young exporters stress budget reforms to boost exports

LAHORE, Jun 01 (APP):Young Exporters Association Chairman Shoaib Ayub Battalvi called for urgent structural reforms in the federal budget 2026-27 to accelerate exports, fortify foreign exchange reserves and place Pakistan’s economy on a path to sustainable growth.

In a media statement issued here Monday, Battalvi said that expanding exports was the need of the hour, as a robust export sector remained the most effective route to overcoming the country’s economic challenges. He stressed that Pakistan’s long-term economic stability depended on promotion of exports and removal of key obstacles faced by exporters.

He pointed out that one of the most pressing issues confronting exporters was the unfavourable exchange rates offered by banks on export remittances, received from abroad, which significantly reduced their earnings. He said exporters were also burdened by various banking charges, including documentation fees, export form fees, financial instrument charges and other deductions that further eroded profitability.

Battalvi said the tax regime had become another major challenge for exporters. According to him, businesses are required to pay multiple taxes at different stages of their operations, including withholding tax, taxes on electricity bills, transport-related levies, labour and staff-related expenses, as well as other indirect taxes. In some cases, exporters have also reported additional deductions on export remittances.

Expressing concern over rising freight and logistics costs, he noted that increasing charges imposed by shipping lines and airlines were undermining the competitiveness of Pakistani products in international markets. He called for stronger regulatory oversight and greater transparency in the logistics sector to protect exporters from unnecessary expenses.

He further observed that industries importing raw materials or products for value addition and subsequent re-export also faced numerous taxes and complex regulatory procedures, discouraging re-export activities and value-added exports.

The Young Exporters Association chairman urged the government to review bank deductions and exchange-rate mechanisms for export remittances, simplify and streamline the tax system for exporters, and establish effective checks and balances in the shipping, airline and logistics sectors.

He also called for faster, more transparent and business-friendly customs and banking procedures, along with special incentives and facilitation measures for small exporters and e-commerce businesses.

Battalvi said that resolving these fundamental issues could lead to a significant increase in Pakistan’s exports, strengthen foreign exchange reserves, generate employment opportunities and support sustainable economic growth.

“Pakistan must reduce its dependence on imports and focus more on exports, as strong exports are the foundation of a strong economy,” he added.