PIA may give freight subsidy on fruit exports

KARACHI: Pakistan International Airlines (PIA) is expected to give freight subsidy on exports of fruits and vegetables, a businessman said on Monday, hoping a significant boost to foreign inflows in an effect.

Ikhtiyar Baig, senior vice president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said currently cost of logistics is high and due to which local fruits and vegetables have become uncompetitive in the international market.

“In a meeting with PIA Managing Director Arshad Mahmood Malik we had requested freight subsidy for fruits and vegetables export, to which he had expressed his agreement,” Baig said, addressing a seminar. “Air freight subsidy would certainly multiply exports,” he added.

At present, exports of fruits and vegetables contribute around 3 percent ($651 million) to total annual exports of $22.9 billion from the agriculture economy. Fruit exports amounted to $415.978 million, while vegetable exports stood at $234.845 million in FY2019, Pakistan Bureau of Statistics’ data showed. FPCCI said freight subsidy on fruits and vegetables would enhance exports.

Muhammad Ashraf, chief executive officer of Pakistan Horticulture Development and Export Company (PHDEC) said around 103,000 tons of mangoes have already been exported this season, while exports would surpass 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 latest exports did not include unofficial trade with Iran and Afghanistan. Last year, mango exports stood at 80,000 tons. Exports are, however, still low given the annual mango production of 1.7 million tons.

Ashraf said mango exports fetched $79 million last year, while this season’s exports have so far reached $93 million. “More importantly, exports to premium price markets have increased and new markets have also been opened up.”

PHDEC chief said the company would be holding post-export season seminars for all exportable products to analyse the markets and prepare a strategy for the next season.