ISLAMABAD: Federal Minister for Commerce, Jam Kamal Khan has said that owing to the International Monetary Fund (IMF) programme, the government has limited options to facilitate the business community.
He was briefing the Senate Standing Committee on Commerce, which met here on Monday with Senator Anusha Rahman Ahmad Khan in the chair.
The minister added that under the IMF programme policy space remains limited, which requires equal treatment of all sectors and discourages sector-specific incentives.
The Standing Committee members strongly criticised the Federal Board of Revenue (FBR) chairman, saying the FBR has even failed to prepare a module on the batter trade with Iran.
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Committee members demanded that FBR Chairman Rashid Mahmood Langrial be summoned over the non-implementation of a Statutory Regulatory Order (SRO) on trade facilitation with Iran, with further alleging that the (FBR was creating hurdles instead of facilitating the business community.
Senator Talha Mahmood said that the FBR was currently behaving like a ‘Mongol force’. He said: “FBR chairman resembled Genghis Khan, holding an axe in his hand.” He warned that the FBR would destroy the industrial sector.
Chairperson Senator Anusha Rahman emphasized to take necessary measures to facilitate the eligible women entrepreneurs participation on national and international expos.
Jama Kamal in his briefing said that the IMF insists on equal treatment for all sectors saying” IMF demands an increase in tax revenue before granting relief to various sectors.” The committee was informed that the IMF has also raised objections regarding Special Economic Zones.
The minister said that the IMF maintains that subsidies should only be provided once revenue increases.
Jam Kamal said that ninety-five per cent of the population in Pakistan does not have access to financing facilities. Officials of the Ministry of Commerce expressed hope that the policy rate would come down to single digits by June.
The standing committee also recommended relief in income tax rates. The meeting was informed that the current volume of bilateral trade with Iran stands at $3.12 billion.
Imports amount to 2.42 billion dollars, while exports stand at $700 million. The minister added that the infrastructure cess was likely to be reduced or abolished, with discussions already held with provincial governments.
He said nearly 95 percent of Pakistan’s business class lacks access to formal financing, while high interest rates have encouraged investors to park funds in banks rather than invest in productive sectors. He noted that returns of around 18.1 percent remain attractive which hurts private investment.
He said the IMF has also raised objections to special economic zones and allows subsidies only when they are linked to higher revenues. Jam Kamal Khan stressed to promote small and medium enterprises (SMEs), noting that Pakistan’s export industries rely heavily on imported raw materials. He said recent relief measures and the prime minister’s announcements were aimed at supporting exports and easing pressure on industry.
Lawmakers expressed hope that the State Bank of Pakistan’s (SBP) policy rate could be brought down to single digits by June 2026, saying elevated interest rates have severely constrained business activity and access to financing.
Senator Saleem Mandviwala said the SRO was issued after a year of effort but remains stalled due to resistance from the FBR. Committee members demanded that FBR Chairman Rashid Mahmood Langrial be summoned to explain the delays, warning that excessive enforcement could further damage industry and business activity.
While briefing on the compliance status of the previous recommendations of the Committee, the Chief Executive Officer (CEO), Trade Development Authority of Pakistan (TDAP) told that the subsidy on air fare for women entrepreneurs has been upgraded upto 50 percent on air fare and lodging to promote women entrepreneurship.
Upon a query of Senator Talha Mehmood regarding the steps taken for the Chitrali women entrepreneur, CEO told that TDAP has organized an expo for last two consecutive years and many of the women entrepreneurs displayed their products.
Senator Mehmood stressed TDAP to set up a separate office in the region to facilitate the deprived women of that area. The CEO of TDAP informed the Committee that a total of 34 women entrepreneurs were facilitated to visit Bangladesh through TDAP. He added that TDAP also organized awareness programs to enable women entrepreneurs to access international markets.
The Committee recommended to upgrade the subsidy upto 80 percent for atleast first 10 events to the women entrepreneurs over air fare, travelling and lodging.
The Ministry of Commerce briefed the Committee on the Business-to-Business (B2B) Barter Trade Mechanism. It was informed that a total of 200 B2B meetings were held in Tehran during the recent visit, resulting in the identification of several viable solutions for the export of various commodities between the both countries.
The CEO TDAP, informed the Committee that transactions through formal banking channels remain a major hurdle faced by the business community while executing trade deals.
The minister emphasized that smooth banking channels are the backbone of every business, however due to international sanctions, Iran is unable to operate efficiently through conventional banking systems. It was further informed that the Iranian government is inclined to establish a common business market in the border areas to facilitate the business communities of both countries.
The Minister added that discussions are underway to sign a Free Trade Agreement (FTA) with Iran, which is expected to be finalized in the coming months.
The Committee was briefed by the Secretary, Ministry of Commerce, on the initiatives being undertaken under the Export Development Fund (EDF), along with the Prime Minister’s export-focused policy measures aimed at boosting national exports.
During the meeting, the Chairperson inquired about the progress of the working groups. In response, it was informed that a total of nine working groups are actively engaged in pursuing various developments, and that further initiatives are being undertaken to enhance Pakistan’s export performance.
The Chairperson emphasized that economic zones should be made fully operational and properly facilitated to support exporters, and stressed the need to develop business-friendly policies to enhance exports. The Chairperson also recommended a review of income tax policies for exporters.
Copyright Business Recorder, 2026