ISLAMABAD: Commerce Minister Jam Kamal Khan has urged the three provincial governments to remove the infrastructure cess, increasing the cost of exporting goods to the international market.
In letters to the chief ministers of Punjab, Sindh, and Khyber Pakhtunkhwa, the minister explained the impact of infrastructure on the country’s product competitiveness. The commerce ministry has only released a copy of a letter sent to KP Chief Minister Ali Amin Gandapur.
Representatives from several chambers of commerce and trade groups representing export-oriented sectors have contacted Mr Kamal to discuss the negative impact of infrastructural cess on their competitiveness.
The provincial governments implemented the cess to increase provincial revenues and widen the tax base. However, the commerce ministry believes that the cess impacts export competitiveness on the international market.
Writes letters to chief ministers of Sindh, Punjab and KP
The commerce ministry said that withdrawing this levy would not only ease the burden on exporters but also send a positive signal to the domestic and international business community.
An official announcement of the commerce ministry said that Mr Kamal chaired a high-level meeting to revamp the country’s transhipment policy. Representatives from the Ministry of Maritime Affairs, FBR, Customs, Railways, Commerce, and other key stakeholders attended the meeting.
Discussions addressed various issues, such as alternative routes, transhipment modes, and regulatory measures to remove obstacles and make Pakistan a regional transhipment hub.
The revised policy aims to facilitate cargo movement for intra-regional and inter-regional trade, with a special focus on serving landlocked countries in the region. The initiative is expected to boost revenue for the FBR, create employment opportunities for skilled workers, and spur overall development in the country.
Mr Kamal directed all stakeholders to expedite pending matters to ensure the timely implementation of the policy and emphasised the importance of consulting the private sector for their input.
IT exports
Separately, the minister also chaired the first meeting of the IT & E-Commerce Council at the Ministry of Commerce aimed at accelerating the export growth of IT and e-commerce sectors.
Minister of State for IT and Telecommunication Shaza Fatima Khawaja joined the meeting virtually.
Mr Kamal asked council members to submit proposals for further review by the Executive Committee of Commerce. These proposals will be forwarded to the National Export Development Board (NEDB), chaired by Prime Minister Shehbaz Sharif, for comprehensive decision-making on key issues.
Ms Fatima highlighted the government’s target to increase IT exports from $3.223 billion to $25bn by 2029. She assured that all necessary support to enhance IT exports would be provided.
Representatives from leading e-commerce platforms such as Alibaba, Daraz, and P@SHA attended the meeting.
Published in Dawn, September 27th, 2024
