Latest news with #PFVA
Business Recorder
23-05-2025
- Business
- Business Recorder
Pakistan set to launch $100m mango-export drive on 25th
KARACHI: Pakistan is gearing up to kick off its mango export season on May 25, 2025, with an ambitious target of shipping 125,000 tons of the fruit overseas. According to the Pakistan Fruit and Vegetable Exporters Association (PFVA), if the target achieved, the move could generate an estimated $100 million in foreign exchange, offering a significant boost to the country's agricultural exports. The export target for the current season is some 25 percent or 25,000 tons higher than last year. However, climate challenges may impact the overall supply of mangoes. Waheed Ahmed, Patron-in-Chief of PFVA informed that mango production in Pakistan is consistently declining due to climate change and water scarcity and there is a risk of up to 20 percent reduction in total mango production during this year as well. He said Pakistan typically produces around 1.8 million tons of mangoes annually, with 70 percent of the crop grown in Punjab, 29 percent in Sindh, and 1 percent in Khyber Pakhtunkhwa. 'After the projected 20 percent decline, this season's total production may come down to around 1.4 million tons,' he added. Waheed said that efforts are underway to boost mango exports to non-traditional markets. 'In addition to our regular buyers, we are targeting Japan, the United States, South Korea, and Australia, while placing special focus on expanding in Turkey and China,' he informed. He revealed that South Africa is expected to open its market for Pakistani mangoes this season. 'Quarantine experts from South Africa will visit Pakistan during the season, and we hope this will pave the way for mango exports to begin there,' he stated. Copyright Business Recorder, 2025
Express Tribune
23-05-2025
- Business
- Express Tribune
Mango exports to fetch $100m
Listen to article Pakistan is aiming to export 125,000 tonnes of mangoes this season and shipments will commence from May 25. If the target is achieved, the country could fetch an estimated $100 million in foreign exchange, said the Pakistan Fruit and Vegetable Exporters Association (PFVA). The export target for the current season is 25,000 tonnes higher than last year. However, climate challenges may impact the overall supply of mangoes. According to PFVA Patron-in-Chief Waheed Ahmed, mango production in Pakistan is consistently declining due to climate change and water scarcity. "There is a risk of up to 20% reduction in total mango production this year as well," he warned. Ahmed said Pakistan typically produced around 1.8 million tonnes of mangoes annually, with 70% of the crop grown in Punjab, 29% in Sindh and 1% in Khyber-Pakhtunkhwa. After the projected 20% decline, this season's total production may come down to around 1.4 million tonnes. He emphasised that efforts were underway to boost mango exports to non-traditional markets. "In addition to our regular buyers, we are targeting Japan, the United States, South Korea and Australia while paying special attention to expanding footprint in Turkey and China," he said. The PFVA patron-in-chief revealed that South Africa was expected to open its market for Pakistani mangoes in the current season. In this regard, quarantine experts from the African nation will visit Pakistan and it is hoped this will pave the way for beginning mango exports. Highlighting broader challenges, Ahmed said, "Climate change is a serious challenge facing agriculture and increasing water scarcity is also affecting mango production. There is a pressing need for provincial-level initiatives, including better water management, the development of climate-resilient mango varieties, research and development work and modernisation of the entire agriculture sector including horticulture." He also pointed to the rising cost of exports amid regional tensions.
Express Tribune
12-02-2025
- Business
- Express Tribune
Vegetable association demands protection for local tomatoes
KARACHI: The Pakistan Fruit and Vegetable Exporters Association has urged the federal government to increase the regulatory duty on tomato paste imported from China by 100 per cent to protect local farmers. The PFVA has demanded of the government to increase the regulatory duty (RD) on Chinese tomato paste from 20 per cent to 40 per cent, which is an increase of 100 per cent. This move has been proposed to protect local farmers, effectively utilize agricultural produce, and promote investment in the food processing industry. According to the association's head, Waheed Ahmed, one of the major reasons for the decline in the consumption of domestically grown tomatoes is that most manufacturers import tomato paste from China. As a result, local farmers are not getting sufficient benefits and the agriculture sector is suffering. The PFVA has suggested to the government to increase the regulatory duty on tomato paste from 20% to 40%. Currently, imported tomato paste is subject to 20% customs duty and 20% regulatory duty, but despite this, the prices of Chinese tomato paste are lower than those of locally produced tomato paste, which is harming the country's agriculture.
Express Tribune
11-02-2025
- Business
- Express Tribune
Beverage industry calls for tariff reforms
Listen to article KARACHI: Pakistan's food and beverage industry has urged the government to implement tariff reforms to lower production costs, enhance exports, and support local industrial growth. The All Pakistan Fruits and Vegetables Exporters, Importers, and Merchants Association (PFVA) has proposed budgetary measures, including increasing taxes on finished goods and reducing taxes on raw materials. PFVA emphasised the crucial role of the food and agriculture sector in Pakistan's economy. However, high tariffs on essential raw materials, packaging components, and imported production elements are limiting growth. Provisional real GDP data for the first quarter of fiscal year 2025 showed a modest growth of 0.9% compared to 2.3% in the same quarter of fiscal year 2024. This slowdown was primarily due to a sharp deceleration in agriculture sector growth to 1.2% in Q1-FY25, down from 8.1% in the same period last year, according to the State Bank of Pakistan (SBP) governor while announcing the monetary policy on January 27. The proposed reforms focus on cost reduction, efficiency enhancement, and export growth, said Waheed Ahmed, Patron-in-Chief of PFVA. "By reducing production costs and ensuring a level playing field for local manufacturers, Pakistan can strengthen its presence in international markets." One key recommendation is lowering import duties on packaging materials such as plastic and paperboard, which currently face high tariffs of 16% and 20%, respectively. PFVA suggests standardising these duties to 8-10% and offering exemptions for exporters, which could significantly reduce packaging costs and make Pakistani products more competitive internationally. While the government has implemented the Export Facilitation Scheme (EFS) to benefit exporters, certain suppliers who do not directly export but supply processed materials to exporters are still subject to duties, Ahmed noted. PFVA suggests that suppliers of exporters should either be exempt from duties (0%) or be allowed to import materials at a nil-tax rate. This would enable local exporters to obtain materials at lower costs, making their products more competitive globally. To protect local agricultural produce, PFVA proposes increasing the Regulatory Duty (RD) on imported tomato paste from 20% to 40%, encouraging manufacturers to use locally grown tomatoes. This measure is expected to boost demand for domestic agricultural products and reduce reliance on imports. Despite a current customs duty of 20% and an RD of 20%, imported tomato paste prices remain lower than local production costs, Ahmed stated. The government should encourage local manufacturers to source from domestic agriculture, boosting investment in food processing and strengthening local supply chains to prevent excessive reliance on imports. He urged the government to review import data on agricultural products to implement protective measures and support domestic farmers. Another critical reform focuses on reducing import duties on aseptic bags used in juice packaging, which currently face high customs and regulatory duties, including a 20% customs duty, 6% additional customs duty, and 10% RD. Lowering these taxes would cut juice production costs and strengthen the competitiveness of local manufacturers. Additionally, PFVA recommends shifting the 20% Federal Excise Duty (FED) on fruit juices to the import stage of aseptic packaging, preventing tax loopholes and ensuring fairer taxation. The government currently imposes a 20% FED on locally supplied fruit juice in aseptic packaging. However, many local manufacturers bypass this tax by importing materials, producing juices domestically, and selling them in the market without paying the appropriate taxes. Instead of imposing FED at the final product stage, Ahmed suggests applying a 20% FED on aseptic packaging at the import stage. This would prevent tax evasion and ensure that all industry players operate under the same tax conditions. "The impact will manifest in increased government revenue and a level playing field for all manufacturers," he said. These reforms aim to create a more stable tariff structure, attract investments, and support local manufacturers, he added. If implemented, they could enhance Pakistan's processed food exports, strengthen domestic production, and align with the government's broader economic growth strategy. The industry is urging policymakers to incorporate these measures into the upcoming budget to ensure long-term sustainability and global competitiveness.
