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Business Recorder
2 days ago
- Business
- Business Recorder
CCoRR begins deliberations on Regulatory Reforms Package 01
ISLAMABAD: The second meeting of the Cabinet Committee on Regulatory Reforms (CCoRR) was held Friday under the chairmanship of Qaiser Ahmed Sheikh, federal minister for investment. The session marked the beginning of deliberations on Regulatory Reforms Package 01, a key initiative aimed at enhancing the ease of doing business and modernising regulatory practices in Pakistan. The reforms team from the Board of Investment (BOI), led by Additional Secretary Zulfiqar Ali, presented a comprehensive set of reform proposals. Senior officials from key federal ministries and regulatory authorities were also in attendance and provided valuable input during the discussions. The committee reviewed 28 reform proposals in detail, all of which fall under Regulatory Reforms Package 01, focused on simplifying and streamlining Registrations, Licenses, Certificates, and Other Permits (RLCOs). These proposals are designed to eliminate procedural redundancies, digitise approval mechanisms, and abolish outdated or overlapping regulatory requirements. Addressing the meeting, Federal Minister Qaiser Ahmed Sheikh emphasised that regulatory reforms are the top priority of the Prime Minister. He directed all relevant ministries and departments to expedite implementation and ensure timely progress reporting. He also expressed appreciation for the proactive and constructive participation of all stakeholders. The Cabinet Committee will continue its review of the remaining proposals under Package 01 in forthcoming sessions as part of the government's broader agenda to facilitate investment and economic growth. Copyright Business Recorder, 2025
Express Tribune
4 days ago
- Business
- Express Tribune
Work on Rs7.404b KIP may start in September
Planning Minister Ahsan Iqbal on Wednesday directed evaluation of the updated PC1 Karachi Industrial Park project in the light of revised project scope and instructed stakeholders to prepare for groundbreaking ceremony scheduled for Sept 4. The minister chaired a meeting with officers from the Ministry of Industries and Production, Board of Investment and Pakistan Industrial Development Corporation to review the progress of the high-priority project, said a press release. The project is slated for completion within 15 months. The total project cost is estimated at Rs7.404 billion, to be financed over six quarters.
Business Recorder
4 days ago
- Business
- Business Recorder
Minister calls for groundbreaking of KIP on September 4
Islamabad: Planning Minister Ahsan Iqbal chaired a meeting with officers from the Ministry of Industries and Production, Board of Investment and Pakistan Industrial Development Corporation to review the progress of the high-priority Karachi Industrial Park project. The CEO of Pakistan Industrial Development Corporation (PIDC) briefed the Minister on the project's status, highlighting that the original master plan envisioned a phased development approach. The revised PC1 covers development of Block A which is 550 acres long. Furthermore, the Minister directed Industries section of Planning Ministry to evaluate the updated PC1 in the light of revised project scope and instructed stakeholders to prepare for groundbreaking ceremony scheduled for September 4. Rizwan Bhatti, CEO PIDC briefed the Minister that the master plan features industry clustering and was administratively approved on April 21. The project is slated for completion within 15 months. The total project cost is estimated at Rs 7.404 billion, to be financed over six quarters. Dr Erfa Iqbal, Additional Secretary of the Board of Investment mentioned that the project's provisional concept paper would be approved in the next board meeting. The Karachi Industrial Park will provide a plug and play environment to investors at minimal land costs, facilitated through a bankable lease or rental model. While discussing plot allotment, the Minister directed PIDC to establish standards for plot allocation to big and small industries, emphasizing the need for a detailed plan. The Minister stressed on the importance of the Industrial Park, calling it a one-stop facility committed to enhancing investor experience by providing utilities like water, electricity, telecommunication, as well as transportation networks and waste management systems. 'The centralized approach of Karachi Industrial Park will facilitate coordination with all relevant government agencies, reducing bureaucratic hurdles', remarked the Minister. The Federal Minister highlighted the importance of industrial parks in developed countries, stating that these parks should offer community life and facilities, combining "life, leisure, and work." The Federal Minister also advised stakeholders to draw inspiration from Singapore and Vietnam's industrial parks, which cater to all needs. The Arabian Sea Country Club, located adjacent to the right side of the Park, will be revived by PIDC and would serve as a prime entertainment facility, offering recreational facilities. Copyright Business Recorder, 2025
Express Tribune
29-06-2025
- Business
- Express Tribune
Why Pakistan struggles to grow exports
Listen to article The dream of making Pakistan an export-driven economy remains unfulfilled. Despite years of protection and multiple incentives, the industry continues to struggle in global markets. Industrialisation, product diversification and integration into global value chains could not be achieved. Over the past decade, Pakistan's annual exports hovered around $30 billion, with an overwhelming reliance on low value-added goods, textiles and a few agro-based goods. External shocks or global headwinds alone cannot be blamed for the stagnation. Pakistan's inability to grow exports is a result of deep-rooted, systemic weaknesses that are often acknowledged in words but ignored in practice. The country has various policy documents and reform roadmaps but the economic environment has remained the same, barring a few exceptions. A major hurdle lies in the way we regulate businesses. The regulatory landscape is full of outdated laws, redundant approvals and overlapping jurisdictions. Businesses, particularly those engaged in trade, face a maze of compliance requirements that not only increase cost but also diminish the ability to compete globally. The government's recent initiative, the Pakistan Regulatory Modernisation Initiative, led by the Board of Investment, addresses this problem by reviewing and streamlining federal and provincial business regulations. It aims to eliminate unnecessary approvals, standardise procedures, and digitise interactions between firms and state institutions. While this effort holds promise and has already identified several redundant regulations, its true value will depend on the implementation and institutionalisation of reforms. Unless the bureaucratic procedures are streamlined and digitised, and incentives are recalibrated, even the best-designed reform frameworks will struggle to deliver results. Trade facilitation is another area where Pakistan has lagged. Exporters often deal with more than 40 government agencies for a single shipment, each with its forms, timelines, and procedures. These delays not only erode profitability but also damage Pakistan's credibility in global markets. The Pakistan Single Window (PSW) offers a rare bright spot. As a digital platform, it integrates customs and trade-related processes across multiple agencies, allowing importers and exporters to file documents electronically and track approvals in real time. The system has already begun to ease customs clearance and reduce transaction costs. But its long-term success will depend on how quickly and fully all government agencies are brought onto the platform. At present, many departments are hesitant to relinquish control or adapt to the new system. Without clear deadlines and strong political backing, the PSW could fall short of its transformative potential. The financial sector also plays a limiting role. Pakistan's banking sector is heavily invested in government securities, and shows little interest in lending to the risk-prone private sector, especially small and medium enterprises. This risk-averse behaviour has left export-oriented firms, particularly those in non-traditional sectors, starved of the financing needed for machinery upgrades, product innovation, or expansion into new markets. Export refinance schemes exist, but tend to be confined to large players. Unless credit is made more accessible and affordable for a broader base of firms, Pakistan's export base will remain narrow and vulnerable. Equally concerning is the long-standing inclination towards protectionism. High tariffs and regulatory duties have shielded domestic industries from international competition, at the cost of efficiency and innovation. Protected firms have little incentive to modernise or explore global markets. The government's ongoing tariff reform agenda – focused on reducing customs duties, removing additional customs and regulatory duties – is a necessary correction and needs to be acknowledged. However, tariff rationalisation will have a limited impact if it is not accompanied by broader macroeconomic consistency. A market-based exchange rate is crucial. Artificially managed exchange rate distorts competitiveness, deters not only imports but exports also. Similarly, the availability of foreign exchange for importing raw material and machinery is crucial. In recent years, administrative controls on foreign currency outflows have disrupted supply chains and left exporters struggling to meet delivery timelines. Policy stability, not ad hoc controls, is what trade needs. Another area where caution is needed is the operation and management of Special Economic Zones (SEZs), launched under CPEC and other schemes, as Pakistan's experiment with Export Processing Zones (EPZs) has not yielded desired results. EPZs were once envisioned as catalysts for industrial growth and global integration. Today, they contribute less than 5% of total exports. Investors have been deterred by weak infrastructure, policy inconsistency, and bureaucratic interference. SEZs are also at risk of meeting the same fate unless these structural issues are addressed. Investors do not just need tax holidays; they need contract enforcement, logistical efficiency and regulatory clarity. Finally, taxation continues to discourage formalisation and scale. Exporters are subject to a complex web of advance income tax, final tax on export proceeds, and sales tax on inputs. Most of these are collected regardless of profit, reducing liquidity and raising the cost of doing business. The absence of an efficient refund system further weakens trust in tax administration. Without a credible shift towards a simpler, fairer and lower tax rate regime, businesses, especially smaller ones, will find it easier to exit formal operations altogether. Pakistan's export competitiveness is marred by neglected structural issues that need to be addressed to promote exports and integration into global value chains. The government's determination in institutionalising regulatory and tariff reforms holds critical importance. Sustained effort is required to create a business-friendly environment for promoting exports and investment in the country. Opening up economy and exposure of local industries to international competition will incentivise innovation, productivity, competitiveness, and ensure efficient allocation of resources. Pakistan does not lack the potential. What it lacks is the resolve to confront the real obstacles standing in the way of sustained export growth. The time for half-measures has passed. If we are to avoid another decade of missed opportunities, serious reforms – coherent, credible, and continuous – are the only way forward. The writer is a research economist
Business Recorder
19-06-2025
- Business
- Business Recorder
PM Shehbaz directs for early finalization of national industrial policy
Prime Minister Muhammad Shehbaz Sharif on Thursday directed for early finalization of national industrial policy in consultation with all stakeholders for lasting solution of problems faced by industries and accelerating industrial growth, according to Radio Pakistan. Chairing a high level meeting in Islamabad, he said development of domestic industries is inevitable for export-led economic growth. Pakistan reveals National Tariff Policy draft, aims to eliminate RDs, ACDs in 5 years The Prime Minister said equipping the industries with international standard manpower and technology is the government's top priority. He said recent economic policies have been devised with the aim to give a boost to domestic industries. He mentioned the tariff rationalization policy, and said it will promote investment in the country. During the meeting, recommendations were presented for development of domestic industries. It was informed that the country's manufacturing sector will be revived through an effective industrial policy. In a related development earlier, the federal government unveiled the draft for the National Tariff Policy (NTP) 2025–30 at the Regulatory Reforms Conference on Wednesday. The conference, organised by the Board of Investment (BoI), aimed at advancing regulatory simplification and industrial competitiveness, bringing together federal ministers, diplomats, and private sector representatives for a strategic dialogue on Pakistan's economic direction. 'The National Tariff Policy 2025–30 is designed to create a predictable, transparent, and investment-friendly tariff structure,' said Rana Ihsaan Afzal, Coordinator to the Prime Minister on Commerce, read a statement released by the Ministry of Commerce. The NTP 2025–30 outlines ambitious reform goals, including the phasing out of ACDs in four years, elimination of RDs and the 5th Schedule within five years, and the establishment of a simplified four-slab Customs Duty structure (0%, 5%, 10%, 15%).
