Pakistan's finance minister criticizes manufacturers for importing parts instead of building them

Men walk along a street at a car part and repair market in Rawalpindi, Pakistan, on November 9, 2020. (AFP/File)
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Updated 17 August 2022
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Pakistan's finance minister criticizes manufacturers for importing parts instead of building them

  • Miftah Ismail says cellphone manufacturers were only adding five percent value to their products
  • He points out that automobile manufacturers had not exported cars to lucrative destinations in 30 years

ISLAMABAD: Federal Minister for Finance and Revenue Miftah Ismail on Wednesday highlighted the structural problems of the country’s economy, saying that Pakistani companies preferred to import parts of their products instead of manufacturing them indigenously at home.

The government recently imposed a temporary ban on the import of luxury items since it was facing a massive current account deficit along with dwindling forex reserves and a rapidly depreciating currency.

The finance minister issued the statement against the same backdrop while addressing a conference of business leaders in the federal capital where he specifically mentioned the country’s cellphone and automobile manufacturers.

“We have given subsidies and 10 percent duty advantage to mobile industry to manufacture phones in Pakistan but their value addition is not more than five percent,” he said. “They get all of their parts from outside and only assemble them here. We have given double duty protection than its value addition and the same thing holds true for car manufacturing companies as well.”

Ismail noted that automobile manufacturers had been working in Pakistan for more than 30 years, but they had not exported vehicles worth a single dollar.

“Pakistani companies are selling inside the country only, though they should try to sell [their products] in rich markets of the United States, Europe and far eastern countries,” he added. “They sell locally to earn more profit because it is a protected market.”

The minister pointed out that out of Pakistan’s $30 billion exports, around $20 billion were generated by the textile sector.

“We import $80 billion worth of goods from abroad which is unsustainable,” he continued. “Our industries have to increase exports instead of only making local sales.”

Ismail also maintained that agriculture was the backbone of Pakistan’s economy, though he added it needed more innovation by adopting advanced Agri-Tech.

“My focus is to strengthen our agriculture as we have imported $450 million tons of wheat this year and more is still required,” he said.

The money spent on the import of wheat, the minister continued, could be used to support farmers and introduce latest technology in the sector.


Pakistan’s JF-17 fighter jet draws ‘strong interest’ at Riyadh defense exhibition

Updated 29 min 30 sec ago
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Pakistan’s JF-17 fighter jet draws ‘strong interest’ at Riyadh defense exhibition

  • Jets showcased as Pakistan seeks to expand defense exports
  • Interest in JF-17 has heightened after May 2025 conflict with India 

ISLAMABAD: Pakistan’s JF-17 Thunder fighter jet has drawn “strong interest” at the World Defense Exhibition in Riyadh, Pakistan’s state broadcaster said on Sunday, as Islamabad promotes the aircraft to international buyers at one of the region’s largest defense industry events.

The exhibition brings together defense officials, manufacturers and military delegations from dozens of countries, offering a platform for arms exporters to showcase equipment and pursue new contracts amid heightened global and regional security concerns.

Saudi Arabia has sought to position Riyadh as a regional hub for defense and aerospace exhibitions, using such events to foster partnerships and attract international manufacturers as part of broader diversification efforts. 

Last year Islamabad signed a mutual defense pact with Riyadh and is reportedly discussing another defense agreement involving Saudi Arabia and Turkiye, although details have not been made public.

“At the World Defense Exhibition in Riyadh, the Pakistan Air Force’s JF-17 Thunder has attracted strong interest from visitors and defense experts, standing out among fighter jets displayed by the US, Saudi Arabia and other countries,” state broadcaster Pakistan Television reported.

Islamabad is attending the exhibition in the backdrop of talks with at least 13 countries, six to eight of which are in an advanced stage, for deals involving JF-17 jets made jointly with China as well as training aircraft, drones, and weapons systems, according to recent media reports. 

Interest in the JF-17 jets has been bolstered by its operational visibility following the Pakistan-India military confrontation in May 2025, which Pakistani officials and defense analysts have cited as reinforcing the aircraft’s combat credibility.

Islamabad has increasingly positioned the JF-17 as a cost-effective multirole combat aircraft for countries seeking alternatives to high-end Western fighter jets. The aircraft is already in service with several foreign air forces and remains central to Islamabad’s defense export strategy.

Countries engaged in talks include Sudan, Saudi Arabia, Indonesia, Morocco, Ethiopia, and Nigeria as well as the government in eastern Libya led by Khalifa Haftar. Discussions on JF-17s and other weapons with Bangladesh and Iraq have been publicly acknowledged by Pakistan’s military, although more details have not been made public.

Almost all the potential buyers are Muslim-majority nations, like Pakistan. Many are from the predominantly Muslim Middle East, where Pakistan has historically been a security provider.

Separately, Pakistan’s Defense Minister Khawaja Asif met his Saudi counterpart, Khalid bin Salman bin Abdulaziz Al Saud, at the sidelines of the event. 

Asif congratulated the Saudi leadership and the defense minister on the “successful and splendid” organization of the World Defense Show, state broadcaster Radio Pakistan reported. 

“He described this global defense event as an important milestone in promoting defense cooperation in the region,” Radio Pakistan said.