PIA to give freight subsidy on exports of fruits and vegetables to boost foreign inflows

The fruit exports amounted to $415.978 million, and vegetables at $234.845 million for FY-19.



PIA (Pakistan International Airlines) is expected to provide freight subsidy on fruit and vegetable exports, as per a businessman. This will help in boosting foreign inflows.

Ikhtiyar Baig, senior vice president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said at the moment, cost of logistics is high. Due to this, local fruits and vegetables aren’t competitive in the foreign market.

“In a meeting with PIA Managing Director Arshad Mahmood Malik we had requested freight subsidy for fruits and vegetable export, to which he had expressed his agreement,” – Baig said, addressing a seminar.

“Airfreight subsidy would certainly multiply exports,” he added.

Exports of fruits and vegetables make up around 3% ($651 million) to total annual exports of $22.9 billion from the agriculture economy.

The fruit exports touched $415.978 million:

The fruit exports amounted to $415.978 million, and vegetables at $234.845 million in the Fiscal Year 2019, according to the data shown by the Pakistan Bureau of Statistics.

The chief executive officer (CEO) of Pakistan Horticulture Development and Export Company (PHDEC), Muhammad Ashraf said that around 103,000 tons of mangoes have been exported this season, the exports would, however, pass 120,000 tons.

“Pakistan exported record 103,000 tons of mango in 2011, and this season all previous records have been broken,” – Ashraf said.

The newest exports didn’t include unofficial trade with Iran and Afghanistan. Last year, mango exports were at 80,000 tons. Exports are still low, given the annual mango production is 1.7 million tons.

As per Ashraf, the mango exports made $79 million last year, up until now, the exports of the current season have reached $93 million.

“More importantly, exports to premium price markets have increased and new markets have also been opened up.”

PHDEC chief said that the company will soon hold a post-export season seminar for all products to analyze the market trends and come up with a strategy for the next season, that’ll enhance the exports.

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