Exports increase 11pc amid soaring deficit - Business - DAWN.COM

ISLAMABAD: Pakistan’s merchandise exports grew by 10.84 per cent in the first quarter of the current fiscal year (FY27), despite the trade gap widening on the back of rising imports, the Pakistan Bureau of Statistics reported on Friday.

In absolute terms, export proceeds stood at $8.43 billion in July-September, up from $7.59bn in the corresponding period last year.

Officials noted that the impact of budgetary measures on the export sector may become more apparent in the months ahead. Export proceeds grew despite Prime Minister Shehbaz Sharif’s clear displeasure with exporters’ performance.

In September, exports rose by 17.61pc to $2.94bn, from $2.49bn in the same month last year, suggesting a revival of the export sector.

Trade gap widens 15.13pc to $10.79bn in July-Sept

On a month-on-month basis, export proceeds rose 16.07pc.

In FY26, Pakistan’s merchandise exports not only missed the annual target by $4.87bn, but also contracted, reflecting the PML-N-led coalition government’s failure to achieve visible improvement over the last four years. Export proceeds also contracted by 5.97pc to $32.04bn.

The planning ministry had earlier projected that export proceeds would climb to $60bn by 2030 — a target that has largely remained confined to official documents. More recently, however, the same ministry revised the projection upward, setting a new target of $100bn by 2035.

Jawed Bilwani, Coordinator of the All Pakistan Exporters Association Forum, said exporters were struggling for survival amid unprecedented challenges, including high manufacturing costs, lack of competitiveness, and the absence of a level playing field.

He highlighted that Pakistani exporters operate on narrow profit margins compared to regional competitors, face higher taxes than other businesses, and endure prolonged delays in refund payments without compensation. He added that arbitrary FBR deductions, liquidity pressures, and high operational costs were crippling the sector.

Pakistan provides fuel aid to over 9 million low-income people as Middle East war drives up prices - myMotherLode.com

ISLAMABAD (AP) — Pakistan’s government has provided fuel subsidies to more than 9 million low-income people as the U.S.-Iran war drives up energy prices, officials said Tuesday.

Information Technology Minister Shaza Fatima Khawaja said the program was designed to ease the burden on millions of people as regional geopolitical tensions drove up global fuel prices.

“We have ensured the process remains seamless and agile for citizens,” Khawaja said, describing it as Pakistan’s first nationwide use of technology to deliver targeted fuel subsidies.

Rising petrol and diesel prices have added pressure on a cash-strapped nation already grappling with high inflation, pushing up transportation, food and other living costs and raising fears of anti-government protests.

The program, approved by Prime Minister Shehbaz Sharif last month, offers fuel discounts to eligible motorcycle riders, rickshaw operators and owners of small cars, many of whom depend on their vehicles for work and daily travel. 

The subsidies were announced after Jamaat-e-Islami, Pakistan’s major Islamist political party, threatened to march on Islamabad to pressure the government to cut taxes on petrol and diesel.

Fuel prices in Pakistan have risen by more than 50% since the war between the United States and Iran began earlier this year, adding to pressure on households already struggling with the cost of living. Sharif’s government says the subsidies are intended to help low-income motorists buy gasoline at prewar prices.

Petroleum Minister Ali Pervaiz Malik said more than 9 million people are benefiting from the program, in which eligible motorists receive a token by text message and present it at a participating gas station, where staff verify their eligibility before applying the discount.

According to the Ministry of Information Technology and Telecommunication, the amount and frequency of assistance vary by vehicle type. Motorcycle and three-wheeler users qualify for a discount of 500 rupees ($1.79) a week, with a limit of four tokens a month. That brings their maximum monthly assistance to 2,000 rupees ($7.14).

Owners of cars with engines of up to 800 cubic centimeters are eligible for a discount of 100 rupees (36 cents) per liter on up to 10 liters of gasoline (2.6 gallons) every 10 days. They can receive three tokens a month, saving up to 3,000 rupees ($10.71).

Amir Shahzad, an Islamabad resident, said the subsidy was enough to cover his commute between home and work. However, he added, “if I need to travel to another city, I will have to purchase petrol at the prevailing market price.”

Pakistan relies heavily on loans from the International Monetary Fund, which wants Islamabad to slash subsidies on wheat and other items.