• Commerce minister admits pressure from energy, freight and tax costs
• PHMA seeks reinstatement of EFS in its original form
ISLAMABAD: As exporters warn of declining competitiveness, Commerce Minister Jam Kamal Khan on Wednesday acknowledged mounting pressures from rising energy, transport and freight costs, higher taxation and shifting global trade conditions.
During a meeting, Mr Khan told leading exporters that the government was engaging directly with industry stakeholders to identify practical solutions through coordinated efforts involving relevant ministries and regulatory authorities.
An official announcement said Mr Khan emphasised the need to diversify Pakistan’s export basket, promote value-added products, explore new international markets and remove structural barriers affecting exporters.
Business representatives appreciated the Exim Bank scheme for exporters, calling it a positive initiative to improve access to export financing and support businesses seeking to expand internationally.
However, they highlighted concerns about high energy costs, the captive power gas levy, provincial infrastructure levies, and rising production expenses. Petroleum Division officials clarified the gas levy mechanism.
The exporters also discussed international shipping delays, port facilitation, tax refunds and banking regulations, and proposed greater flexibility in payment settlement periods due to disruptions in global logistics.
During the meeting, representatives of the meat and livestock sector highlighted challenges relating to foot-and-mouth disease, international sanitary requirements, border restrictions and access to Gulf markets.
The meeting was also informed of plans for a dedicated, private-sector-led livestock board.
Mineral exporters raised concerns regarding restrictions on mining explosives and withholding taxes, while representative of surgical instruments sector emphasised the need for technological advancement, skilled human resources, industrial investment and modernisation to enhance Pakistan’s export competitiveness.
FBR officials briefed participants on measures to improve tax refund processing and digital invoicing, while exporters highlighted difficulties relating to outstanding refunds, business visas and international compliance requirements.
The meeting was also attended virtually by Maritime Affairs Minister Junaid Anwar, while State Minister for Finance Bilal Azhar Kayani, Coordinator Ihsaan Afzal Khan, secretaries of ministries concerned and senior officials from relevant departments participated. Most business representatives joined virtually, while others attended in person.
Meanwhile, Central Chairman of the Pakistan Hosiery Manufacturers & Exporters Association (PHMA) Syed Zia Alamdar Hussain has urged the government to reinstate the Export Facilitation Scheme (EFS) in its original form.
However, the PHMA emphasised that the recent decline in exports must also be examined in the context of policy changes that have increased the cost of doing business and created serious cash flow challenges for textile exporters.
Published in Dawn, October 22nd, 2026
