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Express Tribune
08-05-2025
- Business
- Express Tribune
Sector-wide reforms initiated
The Cabinet Committee on Regulatory Reforms (CCoRR), in its first meeting at the Board of Investment, approved wide-ranging reforms across multiple sectors — including DRAP, NHA, PHA, FSC&RD. photo: file Listen to article The government is going to introduce a set of reforms in different sectors of the country to ensure ease of doing business. The Cabinet Committee on Regulatory Reforms (CCoRR) in its recent meeting agreed to a set of reforms to be introduced in the coming days. The first meeting of the Cabinet Committee on Regulatory Reforms (CCoRR) was held at the Board of Investment on May 6, 2025, in line with Prime Minister Shehbaz Sharif's vision to streamline Pakistan's regulatory landscape and improve the ease of doing business. The reforms are going to be introduced in multiple sectors including the Drug Regulatory Authority of Pakistan (DRAP), National Highway Authority (NHA), Pakistan Halal Authority (PHA), and the Federal Seed Certification and Registration Department (FSC&RD). One key proposal calls for DRAP to sign a Memorandum of Understanding (MoU) with the Intellectual Property Organisation of Pakistan (Pak-IPO) to ensure real-time data sharing related to trademark registration. Currently, a lack of coordination between the two entities has resulted in overlapping brand name claims. The proposed alignment would be in line with international best practices. The committee has also agreed that DRAP should adopt the principle of "obtain once, use multiple times" to eliminate the duplication of documents in its licensing processes. Additionally, the committee has directed the authority to prescribe fixed timelines for the evaluation and issuance of licenses, certificates, and permits. The cabinet body has also directed Islamabad Healthcare Regulatory Authority (IHRA) to outsource licensing and registration inspections of healthcare facilities to accredited third-party inspectors (TPIs) in a bid to reduce procedural delays. Mandatory inspections, which are currently handled in-house, have been cited as time-consuming and inefficient. In another move, IHRA has been directed to digitise its complaint management system to include businesses alongside patients, ensuring a more comprehensive and tech-enabled grievance redressal mechanism. Under the reforms, the PHA has been directed to revise its certification fee structure, which currently imposes a 0.025% turnover fee on businesses. The fee has been labelled as an indirect tax that discourages growth and hurts export competitiveness. The committee has agreed to exempt exporters from this fee and to automate and integrate the entire Halal certification process with the Pakistan Single Window (PSW) for enhanced efficiency. The committee has agreed to several reforms in Islamabad Capital Territory (ICT) under the Labour Welfare Department (LWD) and the Registrar of Firms (ROF): Currently, there is no defined timeline for boiler inspections during manufacturing unit registration. The committee has agreed to set a clear timeline, similar to India's 30-day inspection requirement. The factory registration process remains fully manual, requiring physical visits, extensive paperwork, and repeated follow-ups. ICT has proposed streamlining and digitising the system. CCORR is expected to review implementation strategy and financial requirements. The partnership firm registration process currently demands in-person appearances from all partners and witnesses. Authorities now proposed moving to a fully digital registration process. CCORR may direct ICT to set a specific implementation timeline. A proposal has been made to extend the validity of trade licenses, which are currently valid for only one year. Currently, trade licenses require annual renewals and mandatory inspections. The proposal involves extending the validity to three years to reduce the compliance burden. CCORR may issue formal instructions to implement this change.
Express Tribune
01-05-2025
- Business
- Express Tribune
Startup unveils AI solution for foreign trade
Listen to article A Pakistani technology company, Galaxefi, has introduced AI Faceless Operations, a fully automated, round-the-clock system designed to digitalise and streamline cross-border trade processes. The solution aims to address major inefficiencies in the trade sector, which currently suffers an estimated annual loss of $36 billion due to outdated, paper-based systems that also threaten up to 3 million jobs. Galaxefi's innovation centres on Galaxbot, a multilingual, AI-powered virtual assistant that enables users to manage trade operations through simple voice or chat commands. The assistant can automatically complete shipment details, generate customs and regulatory documents, provide real-time cargo tracking, and issue alerts in case of exceptions or delays. As per details shared by the company, the new system is designed to operate without the need for human oversight, making it ideal for around-the-clock logistics support. Complementing Galaxbot is Butler Services, a network of AI agents that perform routine logistics tasks such as customs filings, inventory checks, and customer service. These AI agents allow businesses, particularly SMEs and logistics providers, to manage peak-season demand without hiring additional staff. This "faceless" approach to resource management not only boosts efficiency but also significantly reduces operational costs. The launch of AI Faceless Operations is aligned with national initiatives like Digital Pakistan and the Pakistan Single Window (PSW), both of which aim to modernise the country's trade infrastructure. According to Galaxefi, the system can accelerate processing times by up to 70%, cut down on overhead, and enable hands-free, 24/7 trade facilitation. "As Pakistan moves toward digital trade, we need a hands-free solution that never sleeps," said Asif Pervez, Founder and CEO of Galaxefi. "Our AI Faceless Operations let companies focus on growth, not paperwork." Asif emphasised that the system is built to empower Pakistani exporters, solo entrepreneurs, and service providers with global-level capabilities, reducing reliance on manual processes and enabling seamless integration into modern supply chains. "This is just the beginning," he added. "In-Shaa-Allah, there's more to come."
Express Tribune
17-04-2025
- Business
- Express Tribune
PSW launches e-certification for pharma exports
Listen to article In its continued efforts to enhance Pakistan's export competitiveness by digitalizing cross-border trade processes and information requirements, the Pakistan Single Window (PSW), in collaboration with the Drug Regulatory Authority of Pakistan (DRAP), has launched the Digital Certificate of Pharmaceutical Product (COPP), required for the export of pharmaceutical products by importing countries. In addition to COPP, the DRAP Clearance Gateway has also begun offering electronic Free Sale Certificate, Good Manufacturing Practice (GMP) Certificate, and the No Objection Certificate (NOC) for exports. This initiative aims to streamline regulatory processes, reduce delays, and align Pakistan's pharmaceutical industry with global best practices. All certificates issued through the PSW platform are secure, electronically verifiable, and embedded with a unique QR code for instant authentication. The service eliminates inefficiencies associated with paper documentation, ensures regulatory compliance, and enhances transparency and trust in Pakistan's pharmaceutical exports, especially in highly regulated markets such as the European Union and the United States. Exports remain a cornerstone of Pakistan's economic development, and strategic efforts like Uraan Pakistan have been rolled out to support cross-border trade. Among key sectors, the pharmaceutical industry has emerged as a high-potential contributor. In FY 2023-24, Pakistan's pharmaceutical exports reached approximately $341 million, reflecting a 3.90% growth over the previous year. "We are proud to introduce the Digital Certificate of Pharmaceutical Product, which will bring Pakistan's pharmaceutical industry in line with global best practices," said Aftab Haider, CEO of Pakistan Single Window. "This initiative significantly enhances the efficiency and transparency of our regulatory systems and will boost exports by ensuring our products meet the highest international standards. The initiative is in line with the Prime Minister's vision of a Digital Pakistan." Dr Obaidullah Malik, CEO of DRAP, emphasised the significance of the development, stating, "The launch of the Digital Certificate of Pharmaceutical Product (COPP), Free Sale Certificate, GMP Certificate, and Export NOC through the DRAP Clearance Gateway reflects our commitment to modernising regulatory practices and strengthening trust in Pakistan's pharmaceutical sector." This development is a key component of Pakistan's broader strategy to digitalise regulatory systems, improve operational efficiency, and foster export-led growth in the pharmaceutical sector.
Express Tribune
18-03-2025
- Business
- Express Tribune
Customs fraud causes loss of billions
Listen to article In a major system breach, importers have tampered with over 10,000 Goods Declaration (GD) forms by altering originally declared quantities and descriptions of goods in connivance with the Pakistan Single Window (PSW) to evade billions of rupees in taxes. The scam has shaken the belief that a GD formthe document carrying details of importing companies, agents, imported goods, and due duties and taxesonce filed online, cannot be altered or changed. The Federal Board of Revenue (FBR) has ordered a post-clearance audit of Transshipment (TP) GD forms, effective from the fiscal year 2022, after The Express Tribune pointed out the massive system breach. The tampering was carried out in collaboration with officers of the PSW, a government-established company responsible for handling trade-related business. To remain undetected, the corrupt network did not alter the Harmonised System (HS) code — a unique numerical identifier for traded goods. However, they manipulated the descriptions and quantities of goods, according to documents reviewed by The Express Tribune. In response to inquiries, an FBR spokesperson confirmed that "HS codes and quantities were changed in the declarations filed at dry ports." However, he added that "nonetheless, these consignments were subjected to physical and documentary scrutiny by Customs at dry ports." The large-scale tampering had been ongoing for years and was uncovered through log edits of these GDs, according to sources. FBR Chairman Rashid Langrial appears determined to dismantle the corrupt network and immediately ordered an inquiry. However, some senior officers attempted to 'technically manipulate' the issue. Initially, FBR officials focused only on cases where HS codes were changed, ignoring alterations in descriptions and quantities. When the issue was raised again, the FBR, on March 13, ordered "a detailed importer-wise analysis of the fields in the Goods Declarations as initially declared at the time of filing the TP GD at the port of origin (Karachi ports) and any subsequent modifications made by the importer or agent at the time of filing the GD at the port of destination (dry ports)." This is the second major scam that has rocked the Customs Department, again involving the PSW. Earlier, a premier intelligence agency uncovered a nexus between 78 corrupt FBR officials and smugglers. Following an Express Tribune story, Prime Minister Shehbaz Sharif ordered the Prime Minister Inspection Commission (PMIC) to launch an inquiry. One of the accused individuals named in the intelligence agency's report currently holds a key position in the Ministry of Finance and has also been summoned by the PMIC. Modus operandi Details show that the importer-PSW officer nexus targeted GD forms originally declared at Karachi port but destined for inland dry ports such as Peshawar, Multan, Lahore, or Faisalabad. The common method of tampering involved declaring at least two types of goods in a GDone subject to a high customs duty and another with a lower duty rate. At the final stage, the quantity of the high-duty item was drastically reduced, while the low-duty item's quantity was increased proportionally to maintain the total weight of the consignment. For instance, a transshipment GD was filed in Karachi on November 26 last year, ending in digits 173, and its home consumption transshipment was filed in Azakhel, Peshawar. The estimated tax evasion in this single case is Rs13.9 million. Similarly, another GD, ending in digits 123, was filed on the same date in Karachi with two declared items. The estimated revenue loss in this case is Rs14.2 million. Sources revealed that thousands of such cases exist, and a deeper investigation could expose the full extent of the fraud. On August 7, a GD ending in digits 026 was filed in Karachi. The TP declaration was manipulated, reducing the actual weight of a heavy-duty item from 10,000 kilograms to just 100 kilograms. This manipulation resulted in an estimated duty and tax evasion of approximately Rs12 million under HS Code 5804.1000. Sources disclosed that, a few years ago, the data source code was transferred from Pakistan Revenue Automation Limited (PRAL)an FBR data subsidiaryto the PSW. They explained that such tampering would not have been possible without the active involvement of individuals with system controls at PSW. The government had set up the Single Window company to handle tasks previously managed by Pakistan Customs. Employees in this company receive hefty salaries, and many were hired from Pakistan Customs. FBR's response An FBR spokesperson stated that importers exploited a system glitch to evade duties and taxes. However, after customs assessment at destination dry ports, the collected duties and taxes were found to be higher than the declared amounts. To ensure no revenue loss, the Customs Wing has directed the Post Clearance Audit wing to review all affected GDs. The spokesperson confirmed that HS codes and quantities were altered in declarations at dry ports, but the consignments still underwent physical and documentary scrutiny by Customs. Under the standard transshipment GD process, the initial declaration's contents cannot be changed when converting a TP GD to a home consumption GD at dry ports. Each dry port's customs administration is legally bound to verify declarations against actual imported goods. Customs officers have access to the original TP declaration, but scrutiny only intensified after The Express Tribune exposed the scam. A review of data found that fewer than 2% of total TPs filed over the past five years showed discrepancies. However, changes were made by importers before customs assessment, meaning GDs were verified before clearance. The FBR claims to have fixed the glitch and has ordered an audit. If adverse findings emerge, the audit scope may extend back to 2015.
Express Tribune
13-03-2025
- Business
- Express Tribune
PSW, Maqta Technologies partner to streamline cross-border trade
Listen to article Pakistan Single Window (PSW) and Maqta Technologies, the digital arm of Abu Dhabi Ports Group, on Thursday, announced a strategic partnership to enhance international trade through cutting-edge digital solutions. PSW, a state-owned entity overseeing Pakistan's Single Window System, is responsible for streamlining cross-border trade by providing traders a unified digital platform for import, export, and transit-related data submission. Maqta Technologies, a global leader in digital trade, transport, and logistics solutions, will collaborate with PSW to modernise and optimise trade processes. According to a statement, the partnership aims to drive digital innovation, improve efficiency, and introduce value-added services, including digital customs clearance, smart warehousing, risk management, eCommerce, cargo and port community systems, trade finance, and predictive analytics. Advanced technologies such as Artificial Intelligence (AI), Blockchain, and the Internet of Things (IoT) will be deployed to minimise delays, enhance transparency, and ensure regulatory compliance. Under the agreement, both organisations will explore joint commercial opportunities in digital trade facilitation and logistics worldwide. The collaboration also emphasises sustainable trade practices by promoting paperless documentation and carbon-efficient logistics. Dr Noura Al Dhaheri, CEO of Digital Cluster and Maqta Technologies Group, highlighted the significance of the partnership, stating, "Our collaboration with Pakistan Single Window underscores our dedication to advancing cross-border trade through advanced digital solutions. By combining our expertise, we aim to unlock new commercial opportunities and maximise trade facilitation in Pakistan and beyond." PSW CEO Syed Aftab Haider echoed this sentiment, describing the partnership as a milestone in PSW's mission to facilitate global trade. "Maqta Technologies Group brings invaluable experience in digital customs and trade solutions, while PSW is emerging as the most successful Single Window implementation in the region. Together, we are positioned to drive meaningful advancements in trade facilitation," he said.
