Stakeholders ask provinces to abolish export cess

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