The Commerce Ministry and exporters joined forces on Thursday to express strong opposition to the Finance Ministry and Federal Board of Revenue (FBR) regarding an ‘unjust’ federal budget, formulated in consultation with the International Money Fund (IMF), which they believe will negatively impact exports. This sentiment was echoed during a Senate Standing Committee on Commerce meeting, presided over by Senator Anusha Rahman and attended by Senators Sarmad Ali, Amir Waliuddin Chishti, and Tallal Badar.
Chief Executive of the Trade Development Authority of Pakistan (TDAP), Zubair Motiwala, presented a detailed overview of TDAP’s activities, emphasizing trade facilitation and product development. He highlighted TDAP’s future plans to enhance Pakistan’s international market share but criticized certain exporters for sending substandard products, such as rotten mangoes, which tarnish the country’s reputation. Motiwala also mentioned that the UAE has agreed to host a single-country exhibition for Pakistan.
The committee extensively discussed the export of IT services, with the Chairperson emphasizing the need for greater incentives to stimulate sector growth. Additional Secretary Commerce, Syed Hamid Ali, argued that the Commerce Ministry should be treated differently from other ministries due to its role in earning foreign currency for the country. He expressed frustration that the Commerce Ministry’s budget recommendations were ignored, and issues affecting its attached entities were not prioritized by the Finance Ministry.
Motiwala also raised concerns about a recent SRO 350 issued by the FBR, which has negatively impacted the export industry by tying up significant capital. He recounted a conversation with FBR Chairman Malik Amjed Zubair Tiwana, highlighting the urgency of resolving these issues.
Senator Anusha Rahman, despite her initial reluctance to join the Commerce Committee, stressed the need for serious efforts to boost exports. Motiwala reiterated his concern that the current taxation measures would decrease exports, a sentiment he had conveyed to high-level officials.
The committee also discussed how India and China have dominated international markets, prompting inquiries into TDAP’s strategies for finding new markets. Motiwala responded that efforts are underway to improve product quality and export surplus, particularly in agriculture, despite challenges posed by low-quality exports tarnishing Pakistan’s image.
Javed Bilwani, representing Exporters Associations, highlighted the difficulties faced by exporters under the new budget, which imposes multiple taxes without consulting TDAP on the cost of doing business in Pakistan compared to regional competitors. He proposed that Trade and Investment Officers (TIOs) should exclusively come from the Commerce Ministry and criticized the lack of documentation among certain export sectors, questioning their ability to comply with the new tax regime.
Bilwani also suggested a five-year Trade Policy with fixed taxes and utilities in dollar terms, along with a clear schedule of public holidays, to provide stability for exporters. He argued that the current conditions erode exporters’ trust in the government, which hinders business operations.
Director General of the Intellectual Property Organization (IPO) presented the organization’s performance, highlighting staffing shortages and pending cases. The committee gave a two-month deadline to fill vacant positions to streamline operations and directed the IPO to hire an IT firm through a competitive bidding process to expedite application registrations, rather than relying on an MoU-based contract. The absence of the IPO Chairman from the meeting was also noted.
