Review of incentives to boost export underway

Published May 10, 2026 Updated May 10, 2026 07:45am
Economic Affairs Minister Ahad Cheema chairs a meeting on export schemes in Islamabad on May 9. — PID
Economic Affairs Minister Ahad Cheema chairs a meeting on export schemes in Islamabad on May 9. — PID

ISLAMABAD: In a departure from established practice, the government has initiated a review of export promotion schemes and incentive options for the upcoming budget, holding a special meeting at the Economic Affairs Division and reaching out to international experts for policy input.

As part of this policy decision, the government has assigned Economic Affairs Minister Ahad Cheema on Saturday, rather than Commerce Minister Jam Kamal Khan, to oversee and review proposals for targeted incentives across various sectors.

A dedicated Tariff Policy Board under the Ministry of Commerce was mandated to handle tariff issues across sectors, and the ministry also had a separate export promotion mechanism. Ironically, Mr Kamal also continued meeting with stakeholders to review budgetary proposals.

An official announcement said that a meeting was held under the chairmanship of Ahad Cheema to review export promotion schemes and policy options for the upcoming federal budget, with a focus on strengthening Pakistan’s exports and supporting priority sectors through effective, targeted incentives.

Ahad Cheema leads budget talks; commerce ministry sidelined on tariffs; experts called for input

The meeting was attended by Minister of State for Finance Bilal Azhar Kayani, Governor State Bank of Pakistan Jameel Ahmad, Secretary Finance Imdadullah Bosal, Chairman Federal Board of Revenue Rashid Mah­mood Langrial, and Secretary Commerce Jawad Paul.

The Saturday meeting featured the special participation of Professor Stefan Dercon, who had earlier been engaged by Prime Minister Shehbaz Sharif to prepare a national economic plan. The plan, however, was postponed ahead of its announcement and later replaced with the planning minister’s 5Es framework.

Interestingly, the same professor was invited again to join the special meeting virtually to review proposals on export competitiveness and economic policy reforms for the upcoming budget.

The participants briefed the economic affairs minister on export policy proposals under consideration for the upcoming budget. Detailed discussions were held on priority sectors and on the formulation of suitable policy measures to enhance export growth, improve competitiveness, increase SME participation in exports, and expand Pakistan’s presence in international markets.

According to the announcement, various proposals relating to fiscal support, trade facilitation, and sector-specific incentives were reviewed during the meeting. Participants observed that not only tax reductions but also improvements in factors of production, infrastructure, facilitation measures, and ease of doing business would play a critical role in boosting exports.

The meeting also reviewed options for export incentives, including performance-based rebates, incentives linked to incremental export growth, and reward mechanisms tied to export target achievement.

The participants agreed on the need to align incentive schemes with measurable outcomes to ensure transparency, efficiency, and long-term economic gains. The proposed measures will be fine-tuned in consultation with relevant stakeholders ahead of the finalisation of the federal budget.

Meanwhile, the commerce minister continued to meet representatives of multiple stakeholders daily. The representatives of the Corporate Dairy Farmers Association met Commerce Minister Jam Kamal on Saturday and briefed him on the progress, investment potential, and future expansion plans of Pakistan’s dairy and livestock sector.

During the meeting, the delegation highlighted the transformation underway in Pakistan’s corporate dairy sector through modern breeding, artificial insemination, scientific herd management, and advanced milk-handling systems. The participants informed the minister that commercial dairy farms are now producing high-quality milk to international standards, enabling the production and export of value-added dairy products, including cheese and other processed dairy products.

Published in Dawn, May 10th, 2026

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