Export woes and industry setbacks: The challenges hindering Pakistan's growth

Muhammad Ali Tabba, CEO of Lucky Cement, shared insights into the company’s growth and Pakistan’s export landscape during a podcast with Kamran Khan.

Reflecting on the family's business roots, Tabba described how the Yunus Brothers Group, established in 1962 as an export-focused entity, evolved into one of Pakistan’s leading industrial firms with global cement exports and operations in Iraq and Congo.

Tabba credited his grandfather, father, and uncles for instilling a “mindset for exports” within the company from its inception. “Exports have always been central to our business strategy,” he said, noting that from the 1970s to the 1990s, Yunus Brothers was a top exporter from Pakistan.

Despite the achievements, Tabba outlined numerous obstacles faced by Pakistan’s industrial sector. He cited the impacts of 1970s nationalization, Afghan Transit Trade, and the Free Trade Agreement (FTA) with China, explaining how these policies weakened Pakistan’s manufacturing capacity and shifted reliance toward imports. “Nationalization broke the back of the industry,” Tabba said, pointing to long-term effects on business confidence.

In contrast, India’s economic reforms in the 1990s allowed its industry to thrive. Tabba stressed that Pakistan’s short-term vision in the energy sector has particularly hurt industrial development. Instead of harnessing domestic resources like Thar coal, the country has relied heavily on imported fuel, he explained.

Tabba also highlighted the untapped potential of regional trade, particularly with Afghanistan and India. While formal trade with India remains halted, he argued that increased regional cooperation could reduce dependency on costly imports.