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Exporters pin hopes on prime minister's intervention as cost pressures mount

A high-level government meeting Thursday produced a plan to package their grievances into a single presentation for the premier.

ISLAMABAD: Pakistan's exporters are looking to the prime minister for relief from a tangle of energy levies, taxes and regulatory fees they say are eroding the country's ability to compete abroad. A high-level government meeting Thursday produced a plan to package their grievances into a single presentation for the premier.


The follow-up consultative meeting, chaired by Federal Minister for Commerce Jam Kamal Khan and attended by Minister of State for Finance and Revenue Bilal Azhar Kayani, senior officials and leading exporters, reviewed what has and has not been done since an earlier round of talks.


The Commerce Ministry will now consolidate exporters' proposals on energy costs, taxation, regulatory charges and market access into a comprehensive presentation for the prime minister's consideration.


Exporters told the meeting they remain squeezed by high industrial energy costs, taxation, financing constraints, regulatory procedures, certification charges and difficulty accessing international markets. Khan said the consultations must produce practical results, noting that even small regulatory costs and procedural complications can add up to a significant drag on Pakistani products' competitiveness.


The gas levy drew particular attention. Participants were told the Ministry of Finance has formed a committee of government and industry representatives to review the levy policy and its calculation formula and recommend possible adjustments.


Exporters also flagged the Punjab infrastructure cess, questioning how it is applied and collected and citing the extra financial burden on businesses. The meeting called for clarity on the legal framework, exemptions and coordination with provincial authorities.


On taxation, participants discussed rationalizing eligibility thresholds for export-related incentives and exploring proportionate super tax relief tied to export-derived income, along with concerns over additional sales tax and refund arrangements for non-traditional exporters. Those proposals will be reviewed with the Ministry of Finance and the Federal Board of Revenue.


The Export Facilitation Scheme was also examined, with participants identifying procedural requirements and eligibility criteria that could be eased, and proposals were made to strengthen incentives under the export growth scheme.


Exporters further complained about certification charges and repeated documentation amendment fees imposed by the Department of Plant Protection. The meeting said regulatory charges should be rationalized so institutions remain sustainable without piling unnecessary costs on exporters, and the Commerce Ministry said it is already examining the matter.


Business visa restrictions, foreign travel advisories and related insurance costs were also raised. Officials said the issues are being pursued through diplomatic channels, and options to speed visa processing for verified exporters and business representatives are being explored.


On market access, Khan said the government is pursuing sustained diplomatic and trade engagement to secure better preferential access for Pakistani exports, revisiting existing arrangements and seeking improved concessions from major partners including China, South Korea, Türkiye, Japan and Vietnam.


He said Pakistan has been advocating greater tariff concessions from China in line with treatment extended to other countries, that discussions with South Korea on preferential trade arrangements are progressing, and that engagement with other partners continues through diplomatic missions, trade offices and bilateral consultations.


The meeting also took up concerns over Pakistani tire exports to Türkiye. Officials said some tire categories already enjoy concessions under the bilateral Preferential Trade Agreement, and exporters were asked to supply specific product details and Harmonized System codes so the ministry can raise outstanding issues with Turkish authorities.


The meeting considered opportunities to expand livestock and dairy exports, with Khan stressing that new proposals should align with ongoing government initiatives and recent consultations involving relevant ministries and private-sector stakeholders.


Officials were directed to prepare consolidated recommendations identifying existing policy measures and additional opportunities for sectoral development.


On Pakistan's GSP Plus status, participants stressed the importance of continued compliance with international commitments and sustained engagement with European partners to protect preferential access to the European market.


Khan called for stronger coordination among federal ministries, provincial governments, regulatory authorities and exporters, urging exporters to submit concise written recommendations spelling out the problems, proposed solutions and government interventions needed.


Relevant ministries and departments were asked to provide updated positions and timelines for resolving pending matters.


The Commerce Ministry will fold the recommendations into a comprehensive presentation for the prime minister at an anticipated high-level meeting. Khan reaffirmed the government's commitment to regular engagement with exporters, reducing the cost of doing business, improving access to international markets and strengthening Pakistan's export-oriented economy.

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