KARACHI: Pakistan Business Council (PBC) has said the export cess recently introduced by the Khyber Pakhtunkhwa government at the rate of two per cent on the value of exports routed through the province will undermine the competitiveness of the country’s exports.

In a letter to Commerce Minister Jam Kamal Khan, PBC Chief Executive Officer Ehsan Malik said that this additional cost now applies to all exports to Afghanistan and Central Asia. Market diversification, amongst others, through regional trade is an important pillar of Pakistan’s export growth strategy.

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Regional trade is also an enabler for broadening the export basket as goods in demand in Central Asia and Afghanistan differ from our traditional exports.

Asks federal commerce minister to intervene for its removal

As goods from Pakistan gain a stronger foothold in these landlocked markets, two-way trade, utilising our highways and ports is also likely to grow. The KP province will be an obvious beneficiary from the additional business that this transit traffic will bring.

“Our eastern neighbour is rapidly building market share in Central Asia and Russia. The KP export cess will undermine the competitiveness of our exports,” he said. He urged the commerce minister to intervene with the KP government to have this export cess removed. He also recommended that the federal government obtain the agreement of all provinces through the Council of Common Interests to exempt exports from provincial levies. Exports are a vital need of the country and all governments must support this national effort.

Published in Dawn, September 7th, 2024