ISLAMABAD: The Executive Committee of the National Export Development Board (NEDB) urged provincial governments on Monday to eliminate the provincial export cess, which increases the cost of goods sold globally and diminishes Pakistan’s competitiveness in international markets.

The issue, among others, was discussed by key stakeholders, including representatives from the Finance Division, Federal Board of Revenue (FBR), Board of Investment (BoI), Ministry of Industries and Production and representatives of all the provinces.

Commerce Minister Jam Kamal chaired the meeting to discuss and resolve pressing challenges faced by exporters.

An official announcement said that a focal point of discussion was the infrastructure cess imposed on exports by the provinces, which increases the cost of goods sold internationally. In a recent letter to the chief ministers of Sindh and Khyber Pakhtunkhwa, Minister Jam urged them to reconsider the cess, highlighting its adverse effects on the country’s trade potential.

Mr Kamal recently reached out to the chief ministers across all provinces. While Punjab and Sindh have responded, replies from Khyber Pakhtunkhwa and Balochistan are still awaited.

It was decided that recommendations from the NEDB will be presented to Prime Minister Shehbaz Sharif in an upcoming meeting, where strategic decisions are expected to remove barriers impeding Pakistan’s export growth.

During the session, Mr Kamal expressed his concerns over the slow progress of some departments, not under the commerce ministry, in tackling export challenges and resolving the major issues that exporters face. He underscored the urgency of concrete action, noting, “Except for the Ministry of Commerce, tangible steps have been scarce, though some departments have submitted their initial proposals.”

He emphasised the importance of unified support across federal and provincial levels to help Pakistan’s export sector flourish. A presentation was made on export profiles, issues and challenges, critical success factors and plans of action for accelerated export growth of leading export sectors developed in consultation with the existing 16 sector councils.

These councils are pivotal in addressing cross-cutting issues across various export industries, as well as sector-specific challenges.

The minister claimed that his government is committed to supporting exporters and the industries that are the backbone of the economy. “We are looking to resolve these issues swiftly, with decisions expected to be made at the highest level during the upcoming NEDB meeting chaired by Prime Minister Shehbaz Sharif”, the minister said.

Shipping industry

In a separate meeting, Mr Kamal emphasised the need to develop and support the country’s shipping sector, asserting that with a robust shipping industry, Pakistan can achieve its ambition of becoming a regional transhipment hub.

The remarks came during a meeting with Parliamentary Secretary of Commerce Dr Zulfiqar Ali Bhatti and the National Institute of Maritime Affairs President, Vice Admiral Ahmed Saeed, to discuss key maritime strategies and opportunities.

Mr Saeed highlighted the importance of recognising shipping as a formalised industry, suggesting that the sector needs “industry status” to thrive and attract the necessary investment and protections. He noted that Pakistan’s strategic location gives it a natural advantage, which, if properly leveraged, could make it an ideal shipping and logistics hub for global trade routes.

Published in Dawn, October 29th, 2024

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Revival? For whom?

Revival? For whom?

Numerous sets of numbers, not quoted by govt sources, suggest that things are not as dazzling as claimed by those who run the country.

Editorial

Premature alarm
Updated 20 Feb, 2025

Premature alarm

Improvement in headline inflation gives policymakers chance to fix investment policies, implement structural reforms.
Forsaken province
20 Feb, 2025

Forsaken province

AND the endless cycle of violence continues. The brutal killing on Tuesday night of seven Punjab-bound passengers in...
In poor health
20 Feb, 2025

In poor health

THE absence of decent and affordable healthcare in the country continues to ruin lives. An example of this is ...
Out of control
Updated 19 Feb, 2025

Out of control

AS bodies continue to fall in Kurram despite a state-sanctioned ceasefire, one wonders how long local militants’...
Hollow words
19 Feb, 2025

Hollow words

IT is not uncommon for politicians to resort to the use of hyperbole in order to boost their public standing. ...
Migration matters
19 Feb, 2025

Migration matters

THE grass, it seems, did appear greener on the other side to millions of people as evidenced by the latest UN ...