Export stasis comes under NA focus

ISLAMABAD: The National Assembly Standing Committee on Commerce on Monday decided to seek detailed briefings from the Ministry of Defence, Ministry of Interior, Ministry of Foreign Affairs and the State Bank of Pakistan (SBP) regarding the decline/stagnation in exports to regional countries.

The committee, chaired by Jawed Hanif Khan, made this decision during discussion on a Calling Attention Notice moved by Aliya Kamran. She asked the Commerce Ministry team, led by Special Secretary Syed Hamid Ali, to name any country where Pakistan’s exports had increased.

She observed that despite improving relations with neighbouring countries, trade remains either zero or negligible. She questioned what measures the Commerce Ministry has taken to enhance exports. She further asked how the government plans to achieve the USD60 billion export target when exports have remained in the range of USD25–30 billion for the past two decades.

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Other committee members echoed similar concerns over the negligible growth in the country’s exports.

Taking note of the discussion, the Chairman remarked that trade with neighbouring countries appear to have been overtaken by security considerations. He suggested inviting the concerned authorities, led by the Defence Minister, for a comprehensive briefing.

The Special Secretary Commerce proposed that the Ministry of Foreign Affairs, Ministry of Interior, and the SBP also be invited, as they were involved in matters relating to regional trade. The committee agreed and decided to call representatives from all the relevant ministries and institutions.

The committee also sought a detailed report on the proposed Quetta Expo Centre, which some members said is planned at a location considered a “no-go area.” Members expressed the view that no project should be constructed in a high-security-risk zone.

The Central Development Working Party (CDWP) has approved the project at a cost of over Rs 4.629 billion; however, funds have not yet been released.

An official from the Planning Ministry indicated disagreement prompting the committee to link approval of the Rs 3 billion export acceleration initiative for SMEs to the consent of the Ministry of Planning, Development and Special Initiatives.

The Special Secretary Commerce stated that there are issues regarding the release of funds for both new and ongoing projects and requested the committee to invite the Planning Ministry to present its viewpoint.

However, the Planning Ministry representative stated that the PSDP allocation for 2025–26 is Rs 1,000 billion and that funds are released according to project priorities.

The committee also endorsed the Commerce Ministry’s decision to extend Rs 15 billion in financial support to rice exporters to facilitate approximately USD1 billion in rice exports, as India has flooded international markets with carryover stocks accumulated during its export restriction period.

Director General (Commerce Ministry) Muhammad Ashraf informed the committee that the EDF Board had been told that rice exports have declined by approximately 50 percent, while the overall export decline stands at USD1.4 billion, nearly 60 percent of which is attributable to the rice sector.

He said global oversupply, driven by India’s return to export markets with heavily subsidized exports, has depressed prices and widened the global price gap. The Chairman of REAP requested financial support from the EDF Board to enable Pakistani exporters to compete with Indian prices in international markets.

The EDF Board, after considering REAP’s request and the Commerce Ministry’s presentation, approved Rs 15 billion in its meeting held on January 19, 2026.

The Ministry of Commerce issued a notification on January 23, 2026, covering export shipments made on or after January 23, 2026, until June 30, 2026.

According to the notification, drawback claims will be admissible only for shipments whose export proceeds have been fully realized.

The Ministry issued Standard Operating Procedures (SPPs) in consultation with the Finance Division, AGPR, Pakistan Single Window (PSW), and Customs. The scheme will be digitally managed by PSW in coordination with SBP, Customs, FTO, and CGA. The EDF has requested the Finance Division to sanction Rs 3 billion to initiate implementation.

The committee also decided to issue a letter of appreciation to the Director General for delivering a concise and comprehensive presentation on the matter.

According to official statement members expressed concern about long standing structural loopholes in Pakistan’s export framework that have remained unresolved for almost two decades.

They highlighted persistent challenges in domestic production, reliance on imports, high cost of doing business, taxation policies, provincial cess, and energy and foreign exchange constraints.

Members also discussed alternative trade partnerships in light of regional developments and the exit of multinational companies.

The Chairman emphasized the need for comprehensive planning, inter-ministerial coordination, and in-camera briefings by the Ministries of Defence, Foreign Affairs, and the State Bank to ensure informed decision-making on regional trade, security, and economic strategies.

The Committee also reviewed two major initiatives under the Public Sector Development Programme (PSDP): the Expo Centre Quetta and the Export Accelerator for SMEs. Concerns were raised over cost escalation, prolonged delays, changes in project location, lack of provincial coordination, and accountability gaps.

The Ministry of Commerce sought additional funding of Rs. 3 billion, while Planning advised that allocations be managed within existing resources or via project-specific approvals.

On the Export Accelerator for SMEs, members stressed the need for clear outcomes, financial commitment, and inter-ministerial coordination to ensure effective implementation.

In another key discussion, the Committee endorsed the timely allocation of Rs. 15 billion from the Export Development Fund (EDF) to support rice exporters, noting its strategic importance amid regional market shifts and India’s export restrictions.

The Ministry confirmed daily monitoring and committed to submitting a detailed follow-up report within 90 days.

The Committee reviewed NICL’s performance and board composition, recognizing strong results over the past three years and real estate holdings valued at Rs. 25 billion, including six units in Dubai worth Rs. 4.6 billion.

Members discussed investment limits, SOPs, portfolio diversification, and risk coverage, while PRCL’s mandate and investment philosophy were reviewed in the context of its upcoming privatization.

Pakistan’s gem and jewellery sector was also discussed, with members noting $450 billion in estimated reserves, exports of Swat emeralds and tamerline, and challenges such as illegal gold exports and lack of hallmarking.

Proposals for a regulatory body, export promotion centres, and adoption of regional and international best practices were presented to ensure self-sustainability and separate management of gems and jewellery.

The Chairman directed the Ministry of Commerce to evaluate these proposals against existing policies and submit recommendations.

Finally, concerns regarding value addition requirements and SRO 760 affecting gold and gemstone exports were highlighted. Members emphasized better coordination between the Ministry of Commerce and the State Bank to resolve remittance and regulatory issues.

The Chairman instructed that all stakeholders be consulted and that senior State Bank officials present concrete solutions at the next meeting.

The Committee underscored the need for timely implementation, financial clarity, and inter-governmental coordination across all sectors to strengthen exports, create employment, and ensure sustainable economic growth.

The meeting was attended by MNAs, Asad Alam Niazi, Kiran Haider, Gul Asghar Khan, Tahira Aurangzeb, Shaista Pervaiz, Farhan Chishti, Khurshid Ahmad Junejo, Dr. Ramesh Kumar Vankwani and Amir Ali Khan Magsi in person and Dr. Mirza Ikhtiar Baig and Muhammad Numan attended the meeting virtually.

The senior officers from Ministry of Commerce, Ministry of Law & Justice, Finance Division, Planning Development and Special Initiative and National Assembly Secretariat were also present in the meeting.

Copyright Business Recorder, 2026