Govt plans Rs2 trillion EXIM pool to boost farm exports

National Compliance Authority to become operational within three months; dedicated SME financing window planned as govt targets shift from raw commodities to processed, certified exports ISLAMABAD: The federal government has announced a series of measures to transform Pakistan's largely raw agricultural exports into high-value, processed and certified products, including doubling the Export-Import Bank (EXIM Bank) export finance pool to Rs2 trillion, establishing a National Compliance Authority and creating a dedicated financing window for small and medium enterprises. The measures were discussed at the third session of the Strategic Dialogue Series on 'Unlocking Pakistan's High-Value Export Potential', chaired by Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal here on Friday. The government also plans to review export policy and regulatory requirements through the Cabinet Committee on Regulatory Reforms, phase down additional customs and regulatory duties in the second year of the National Tariff Policy and use the Pakistan Horticulture Development and Export Company as a platform for agricultural exporters. According to the measures outlined at the conference, the EXIM Bank export finance pool will be expanded from Rs1 trillion to Rs2 trillion during 2026-28, with monthly monitoring of exporters' access to finance. A dedicated SME financing window is also being prepared in coordination with the Ministry of Finance and the State Bank of Pakistan. A National Compliance Authority is expected to become operational within three months, aimed at addressing one of the major barriers faced by Pakistani exporters seeking access to premium international markets. The urgency of the proposed reforms was underlined by the performance of the agriculture and food sector. Food exports stood at $5.02 billion in FY2026 against a food import bill of $9.15 billion. While commodity rice and sugar exports declined, meat, fish and fruit exports recorded growth during the year. Food exports increased by 2.5% in July 2026, the first month of the new fiscal year, with rice exports rising 19% and meat exports 16%, according to figures presented at the conference. Participants identified significant opportunities in halal meat and poultry, premium horticulture, branded basmati rice, processed food, dates, edible oils and certified niche products such as organic and regeneratively produced crops. The potential in the halal meat sector was linked to the government's $700 million Halal Meat Policy target for 2028, while premium horticulture was described as benefiting from new direct access to the European Union market. However, participants noted that Pakistan remains largely absent from the global organic and certified-food market, which had retail sales of around €145 billion in 2024, mainly because of gaps in national standards and domestic certification capacity. The conference also highlighted the livestock sector as one of the country's biggest unrealised export opportunities. Ahsan Iqbal noted that Pakistan has one of the world's largest livestock herds but exports far less value-added product than countries such as Australia, New Zealand and the United States, which have developed processing and branding capabilities. He said agriculture accounts for nearly one-fourth of Pakistan's GDP and employs around 37% of the labour force, yet its export contribution remains disproportionately low. The minister called for a shift from traditional farming to modern, technology-driven agriculture, including weather-resilient seeds, cooperative farming models, improved access to credit and a regulatory framework conducive to private-sector investment. He also identified olive cultivation as a national priority and said Pakistan had the potential to develop into a significant olive oil-producing country. Coordinator to the Prime Minister on Commerce and Industry Rana Ihsaan Afzal Khan said agricultural products account for almost 22% of Pakistan's exports but remain predominantly raw commodities, leaving the sector vulnerable to international price fluctuations and external shocks. He said Pakistan could not achieve its $60 billion export target, or the ambition of taking exports to $100 billion and above by 2035, without moving towards processing, branding and value addition. Rana Ihsaan Afzal stressed the need for modern food-processing facilities, packaging and cold-chain infrastructure, as well as internationally recognised certification systems to improve the shelf life, quality and competitiveness of Pakistani products. He called for a whole-of-government approach involving federal and provincial governments, regulators, exporters, growers and other stakeholders to remove supply-chain and regulatory bottlenecks. Industry and academia also presented a number of proposals, including the removal of the sales-tax differential that reportedly puts processed and packed meat at a disadvantage compared with informal trade, a national cattle and goat farming programme, stronger disease control and breed improvement, and protection of the electronic warehouse receipt system. Participants further called for regulatory action against exporters responsible for substandard shipments that have resulted in the closure of overseas markets for Pakistani rice, the development of export-quality fruit varieties with the Pakistan Agricultural Research Council, national organic standards, accredited laboratories and affordable certification arrangements for small farmers. The Ministry of National Food Security and Research informed the meeting that legal and institutional mechanisms for livestock exports, including the Breeding Policy, Animal Health Bill and a Rs7.35 billion traceability programme, were already in place but required funding and adoption by the provinces. Ahsan Iqbal directed that the proposals emerging from the dialogue be consolidated into decisions and assigned to the relevant ministries for implementation. He also directed stakeholders to reconvene after three months to review progress. The minister said Pakistan's agriculture sector must become a major contributor to the country's export ambitions under the government's Uraan Pakistan programme, which envisages a $1 trillion economy by 2035, supported by exports of $100 billion and above. He said countries such as Vietnam and Malaysia, which were at a comparable level to Pakistan a generation ago, had moved ahead through policy continuity, structural reforms and sustained investment, adding that Pakistan's agriculture sector would have to undergo a similar transformation to realise its export potential.