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Industrial raw materials: Proposals for duty cuts to be submitted to PM
ISLAMABAD: Prime Minister's Special Assistant on Industries and Production, Haroon Akhtar Khan will submit proposals for reducing duties on industrial raw materials for the FY 2025–26 budget to Prime Minister Shehbaz Sharif on Monday.
The Prime Minister had earlier constituted a Committee on Industry, headed by Haroon Akhtar, to formulate proposals regarding duties and taxes across various sectors. The committee convened on May 24, 2025, to deliberate on different recommendations for tariff and duty reductions. These proposals will be formally submitted to the Prime Minister on June 2, 2025, revealed Faiz Ahmad Chadhar, Chief Executive of the Trade Development Authority of Pakistan (TDAP), during a session of the National Assembly Standing Committee on Commerce.
The meeting of the Standing Committee, chaired by Jawed Hanif Khan, addressed several issues related to the Ministry of Commerce. Secretary Commerce, Jawad Paul, led the ministry's delegation.
National Tariff Policy: govt approves phased elimination of import duties
Dispelling concerns about external influence, Secretary Commerce stated there was no pressure from the International Monetary Fund (IMF) for tariff rationalization. 'Things have progressed significantly since March 2025, and tariffs are being rationalized under the FY 2025–26 budget.'
The Commerce Ministry has also been instructed to present a detailed briefing on the National Tariff Policy, and the measures taken to achieve the Prime Minister's $60 billion export target.
The Committee discussed reasons for the ban on export and import of gold and gemstones which has irritated those in the business. It was apprised that on May 7, 2025 a ban was imposed abruptly on export of gold including consignments in transit. 'Stakeholders informed the committee that the sudden ban had caused severe disruptions, particularly to consignments already in transit, 'said one of the gold businessmen from Karachi.
Secretary Commerce Jawad Paul stated that a committee has been constituted to review the abrupt 60-day ban on the export and import of gold and gemstones. He explained that the ban was implemented on the recommendation of the State Bank of Pakistan (SBP). The committee chaired by the Secretary has already held several meetings to examine the issue thoroughly. It is expected to recommend that the government allow the entry of consignments that were already in transit when the notification was issued.
He further suggested that the matter be discussed in more depth at the next meeting, with representatives from the SBP and the Federal Board of Revenue (FBR) in attendance.
On the issue of fumigation of export-bound consignments, MNA Sharmila Farqui informed the committee that rice exporters are being harassed by the Directorate General of the Department of Plant Protection (DPP). She alleged that the department was using pest-control methods involving banned Indian-origin pests, and that officials were opening rice consignments, apparently under the orders of the Director General.
A representative from the Rice Exporters Association of Pakistan (REAP) acknowledged that conditions had somewhat improved for rice exporters but noted that several issues still frequently hamper exports.
In response, DPP Director General Tahir Abbas informed the committee that the government had recently cancelled the licence of a company holding 60% market share for using Indian pests in rice fumigation. He defended the department's strict enforcement of phytosanitary measures, citing a significant reduction in shipment interceptions.
Chairman of the Standing Committee, Jawed Hanif Khan, instructed the DG to maintain strict oversight of departmental operations to ensure that exporters are not mistreated by staff.
Additionally, the Juice Manufacturers Association requested duty drawbacks on incremental exports in the upcoming budget, claiming such measures could help double export volumes in the coming years.
According to official statement, the meeting reviewed the progress of key legislative measures and addressed pressing trade-related matters to enhance Pakistan's commercial landscape. It discussed the previous issue of disruptions in the export of rice.
Emphasising the importance of resolving this matter, the committee urged the Department of Plant Protection to enhance its administrative oversight, particularly concerning container inspections and related procedures. The Committee was assured that efforts were actively underway to address these challenges, with a commitment to minimising, if not eliminating, future disruptions in rice exports.
The committee also discussed the Suspension of SRO 760. The chair emphasised that the suspension of the SRO was a decision of the Federal Cabinet, and only the Cabinet could reinstate it.
However, interim relief for pipeline issues remained a priority, and the Ministry had already made necessary requests for such relief. On discussions regarding granting special relief/ rebate by the government to food exporting companies it was noted that this incremental tax rebate would assist generating additional revenue for the country. The committee decided to forward the matter to the Federal Board of Revenue for further deliberation.
The committee reviewed 'The Export Development Fund (Amendment) Bill, 2025', (moved by Muhammad Mobeen Arif, MNA), and 'The Trade Development Authority of Pakistan (Amendment) Bill, 2025', (moved by Usama Ahmed Mela, MNA) in depth and decided to constitute a Sub-Committee for detailed deliberation on the bills after the expiration of the previous Sub-Committee therefore, pending the bills till then.
The committee decided to hold a detailed briefing on the Pakistan National Tariff Policy in the next meeting. It was stressed that tax liberalisation should not be extended to finished goods and luxury items, ensuring that the focus remained on sectors that aligned with national economic priorities. The proposal for liberalising raw materials and machinery imports to support industrial growth and to enhance productivity was also discussed in the meeting.
The meeting was attended by MNAs, Muhammad Mobeen Arif, Usama Ahmed Mela, Shaista Pervaiz, Dr Mirza Ikhtiar Baig, Muhammad Atif, Tahira Aurangzeb, Khurshid Ahmed Junejo, Kiran Haider, Mir Amir Ali Khan Magsi in person whereas, Asad Alam Niazi, Rana Atif, Muhammad Ali Sarfaraz, Farhan Chishti, MNAs and Sharmila Sahiba Hishaam Faruqui, MNA/ Special Invitee attended the meeting virtually. Senior officers from the Ministry of Commerce, the Ministry of Law and Justice and the Ministry of National Food Security and Research were also present in the meeting.
Copyright Business Recorder, 2025
