Latest news with #CommerceDivision
Express Tribune
17 hours ago
- Business
- Express Tribune
Govt rejects lower gas tariff plea
The Commerce Division argued that tariff concession had been offered to those sectors that had a significant share in Pakistan's exports in 2011, whereas the glass industry's annual exports of $15.9 million were negligible. Photo: file The government has decided against granting a concessionary gas tariff to the zero-rated and export-oriented sectors. It made the decision while considering litigation pertaining to tariff reduction for such industries. In a recent meeting of the Economic Coordination Committee (ECC), it was observed that concessionary gas tariffs had already been exhausted in 2023 and considering those tariffs for zero-rated and export-oriented industries at the current stage may open the floodgates to similar cases. The ECC noted the position and directed the Commerce Division to pursue the case expeditiously in consultation with the Attorney General office. The Ministry of Commerce briefed the meeting that in 2019 Ghani Glass filed a writ petition in the Lahore High Court, praying that the concessionary gas/re-gasified liquefied natural gas (RLNG) tariff, fixed at Rs600 per million British thermal units (mmBtu) and granted to the zero-rated/export-oriented sectors, may be extended to the petitioner as well. The Petroleum Division, Oil and Gas Regulatory Authority, Sui Northern Gas Pipelines Limited (SNGPL) and the Federal Board of Revenue (FBR) were listed as respondents in the petition. However, the Ministry of Finance and the Ministry of Commerce were not impleaded as parties in the case until April 7, 2025. The court directed that the Ministry of Finance, in coordination with the Ministry of Commerce and other relevant stakeholders, within 60 days, place the case of Ghani Glass before the ECC for developing a rational policy to ensure that only the export-oriented industries receive all concessions, rather than allowing sector-based classifications that permit non-exporting industries to take benefit unfairly. The ECC was directed to consider, within 60 days, the petitioner's request for the grant of tariff concession in respect of Sui gas/RLNG, with specific reference to discrimination by excluding glass from the export-oriented sectors. The relevant authority was also directed to examine the application of lower tariff to the petitioner from the date of filing the case (ie, 2015) until the period the benefit was extended to the zero-rated/export-oriented industries. The court directed that the ECC should take into consideration the potential of the glass industry to increase its export share and earn maximum foreign exchange. Furthermore, the forum should examine whether it was feasible to charge any export-focused industry higher prices compared to rates prevalent in other countries. The Commerce Division stated that the FBR, vide Statutory Regulatory Order (SRO) 1125(I)/2011, had granted zero-rated sales tax status to major sectors such as textile, carpet, leather goods, sports goods and surgical instruments. In 2018, the Petroleum Division extended the concessionary RLNG tariff of Rs600 per mmBtu to exporters of the same zero-rated sectors. Following the withdrawal of SRO 1125 through the Finance Bill 2019, an administrative gap emerged regarding the continuation of reduced gas tariffs. Consequently, the Ministry of Commerce declared the erstwhile zero-rated sectors as "export-oriented sectors" in December 2019. Accordingly, the tariff concession remained in place until 2023 and after that it was discontinued. The Commerce Division argued that the concession had been offered to those sectors that had a significant share in Pakistan's total exports in 2011, whereas the glass industry's annual exports of $15.9 million at that time were negligible. On the advice of the Ministry of Law and Justice, the Ministry of Commerce filed a Civil Petition for Leave to Appeal on June 12, 2025 in the Supreme Court, challenging the ruling of the Lahore High Court. Keeping that situation in view, the Commerce Division told the ECC that the demand of Ghani Glass for tariff concession was untenable and may not be entertained. It sought the ECC's approval for the proposal. The ECC considered the Ministry of Commerce's summary, "Implementation of Decision of the Lahore High Court in Writ Petition No 61559 of 2019 titled Ghani Glass versus Federation of Pakistan", and noted the position presented therein. It directed that the Ministry of Commerce may approach the Attorney General office.
Business Recorder
5 days ago
- Business
- Business Recorder
Pakistan's exporters urge policy support to capitalise on US tariff cut
Following a significant cut in US reciprocal tariffs from 29% to 19%, Pakistani exporters have urged the government to ensure consistent policy support, competitive production costs, and easier access to raw materials to maximise the country's export potential in the American market. The development came during a meeting on US Reciprocal Tariffs chaired by Federal Minister for Commerce Jam Kamal Khan, a statement released by the Ministry of Commerce read on Tuesday. The meeting was attended by Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan, Coordinator to the Prime Minister on Commerce Rana Ihsaan Afzal, Secretary Commerce Jawad Paul, senior officers of Commerce Division and Industries and Production Division, and over 30 leading exporters and SMEs from various sectors including apparel and textiles, rice, salt, surgical goods, sports goods, electronics, food and agriculture, leather, and more. During the meeting, the industrialists congratulated the government on securing one of 'Pakistan's most strategic trade wins in recent years over its regional competitors'. However, industry representatives urged the government to provide favourable and predictable policy support, aiming towards optimising the cost of manufacturing and access to the inputs to materialise the future business opportunities. The Minister of Commerce pledged the government's dedication to export-driven policies, encompassing both immediate support measures and sustained long-term strategies. He emphasised that through enhanced collaboration and decisive actions, Pakistan's export industries could achieve significant growth. All recommendations from the exporters, he added, would be submitted to the Prime Minister for consideration. During the meeting, Kamal said that exporters' feedback on the opportunities provided by the tariff reduction necessitates charting a way forward to avail this opportunity and boost exports. Meanwhile, SAPM Haroon Akhtar underscored Pakistan's regional advantage and shared that the government is committed to extending maximum support to the industry to untap business opportunities arising out of the current circumstances.
Express Tribune
25-06-2025
- Business
- Express Tribune
Budget approval process begins
Listen to article The National Assembly on Tuesday initiated the process of the approval of federal budget for fiscal 2025-26, allowing 108 demands for grants worth Rs5,162.5 billion for 29 ministries and divisions after rejecting 405 cut motions proposed by the opposition. During the assembly session, chaired by Speaker Ayaz Sadiq, Finance and Revenue Minister Muhammad Aurangzeb presented the demands under the head of development and non-development ongoing expenditures in the house. The approval of grants pertained to Climate Change Ministry worth Rs3.852 billion; Commerce Division, Rs26.998.5 billion; Communications Division, Rs114. 378 billion; Defence Production, Rs2.879 billion; Economic Affairs Division Rs20.664 billion; Foreign Affairs Division, Rs62.584 billion; and others. Later, the opposition presented 405 cut motions in the Cabinet Secretariat, Commerce, Defence and Energy ministries and divisions. The opposition members termed the performance of these ministries unsatisfactory and demanded a reduction in their budget. The house approved 29 demands for the Cabinet Secretariat worth Rs151.63 billion and rejected 112 cut motions of the opposition; five demands of the Defence Ministry worth over Rs2,600 billion, rejecting 22 cut motions and two demands for Commerce Division of Rs26.99 billion, rejecting 69 cut motions. The house postponed the approval of cut motions and demands for grant pertaining to the ministries of Interior, Finance, Human Rights, and National Food Security until Wednesday (today). The session will resume on Wednesday (today) morning.
Business Recorder
25-06-2025
- Business
- Business Recorder
Commerce Division's expenditure: NA approves two demands for grants of over Rs26.99bn
ISLAMABAD: The National Assembly approved two demands for grants of more than Rs26.99 billion for Commerce Division's expenditure for the financial year ending June 30, 2026. Finance and Revenue Minister Muhammad Aurangzeb presented the demands in the Lower House of the Parliament for approval. The opposition members moved as many as 67 cut motions on these two demands. The finance minister opposed the cut motion. After majority voice voting, the house rejected the cut motions of the opposition. The finance minister presented 26.949 billion a demand for grant to meet the expenditure during the financial year ending on June 30, 2026; another Rs50 million demand for grant in respect of development expenditure of Commerce Division. While winding up discussion on cut motions, Federal Minister for Commerce Jam Kamal Khan said that the current export of Pakistan stand at $30.3 billion. He said that the government wants to extend the export at $60 billion in next four years by taking measures. He said that government is going to introduce the Strategic Trade Policy Framework (STPF) 2024–30 to enhance export. The minister said that for this purpose, we have conducted several meetings on 17 sectoral councils with exporters to get their inputs. He said, 'Our policy reflects ground realities and has clear steps to achieve the $60 billion target. We have examined the inputs of exporters within a time frame. We identified challenges in each sector, proposed legal and institutional reforms, and created a clear roadmap.' He said that the ministry addressed key issues such as production costs, taxation, and monetary policy to make the environment business-friendly. He announced that Pakistan's commercial attachés abroad have been renamed as Trade and Investment Officers (TIOs), and are now selected through a competitive process involving private sector representatives. 'For the first time, we are launching an Electronic Trade Analysis Portal. TIOs will use the portal to report daily on performance, outreach, and investment opportunities. Their work will be measured through strict KPIs and TORs.' He stressed that transparency, accountability, and efficiency are now central to trade governance. 'Our export policy is now built on real-time action, not just paperwork.' About the export of rice, he said that Pakistan recorded a five-year high in Basmati rice exports this year. 'Even with India returning to the market and slashing prices by 15–20 percent, our rice exports held firm at $3.3 billion.' He said that for the first time, the Commerce Ministry has also appointed a Head of Research to guide decisions based on solid data and market trends. He also stressed that agro-food and food technology has been identified as key export areas. 'We're bringing food tech into our export policy to meet global market needs.' The minister said that Pakistan achieved $8 billion in agro-food exports last year—its highest ever. 'This came despite falling global demand, dropping interest rates, and inflation now in single digits.' Copyright Business Recorder, 2025
