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Pakistan’s exports are under growing pressure as major markets, including the EU, implement stricter rules on supply chain traceability and labour reporting. Experts warn that over 70% of Pakistani goods could lose market access unless companies quickly upgrade compliance systems.
Rising Compliance Challenges
World Bank economist Anna Twum highlighted at Tabadlab’s
“Trade, Tariffs, and Beyond — Building Pakistan’s Export Economy”event that new international frameworks demand verified, transparent supply chains.
While Pakistan’s National Tariff Policy is a positive step, she emphasized that exports must drive the country’s growth strategy, noting that current export levels remain below potential despite stabilization efforts.
Barriers to Meeting Global Standards
Aftab Haider, CEO of Pakistan Single Window, said compliance will be difficult due to the large informal sector, limited tax registration, and low digital literacy among farmers. He added that these gaps leave Pakistan “far from” meeting the traceability requirements soon expected by major buyers.
Need for Diversification
Adnan Pasha Siddiqui, advisor to the finance minister, stressed that while the US corridor accounts for $5–6 billion of exports, mostly home textiles, global demand is shifting toward synthetic sportswear and apparel. Competitors like Bangladesh and Vietnam are ahead in these sectors, highlighting the need for Pakistan to diversify beyond traditional products.
Longstanding Structural Issues
Former National Tariff Commission chairperson Robina Athar noted that complex, frequently changing tariffs discourage investment. Experts also pointed out that Pakistan remains largely outside global value chains, with exports concentrated in textiles, cereals, and cotton, relying heavily on markets such as the US, EU, and China. Past trade agreements focused mainly on tariff reductions rather than investment and technology transfer.
