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Express Tribune
16-07-2025
- Business
- Express Tribune
Govt, UK lawmakers discuss diaspora-driven investment
Listen to article Federal Minister for Commerce Jam Kamal Khan met with members of the All-Party Parliamentary Group (APPG) on Pakistan at the House of Commons on Tuesday. According to an official statement, the meeting focused on strengthening bilateral economic ties, enhancing parliamentary cooperation, and tapping into the potential of the 1.7 million-strong British Pakistani diaspora to boost trade and investment. The minister briefed APPG members on Pakistan's recent economic reforms aimed at promoting macroeconomic stability and inclusive growth. He highlighted key initiatives such as tariff rationalisation under the National Tariff Policy, the launch of the Pakistan Single Window to facilitate trade, and the development of Special Economic Zones offering incentives to foreign investors. The two sides also discussed collaboration opportunities in green technologies, renewable energy, and Pakistan's growing IT sector. These areas were identified as key to positioning Pakistan as a competitive hub for UK firms seeking to diversify their supply chains. Minister Jam Kamal emphasised the diaspora's role in connecting both nations and urged continued parliamentary engagement and private sector cooperation to maintain momentum following the UK-Pakistan Trade Dialogue Mechanism signed earlier that day. The meeting reaffirmed a joint commitment to sustainable partnerships for mutual prosperity. Later in the day, the commerce minister also met Mohammad Yasin MP, the UK Prime Minister's Trade Envoy to Pakistan, at the House of Commons. Pakistan's High Commissioner to the UK, Dr Mohammad Faisal, also attended the meeting. The minister congratulated Yasin on his appointment and appreciated his successful visit to Pakistan in June 2025, which helped lay the foundation for stronger economic cooperation. Both sides agreed on the need to deepen trade and investment ties by leveraging historical connections and the recently launched UK-Pakistan Trade and Investment Dialogue. Jam Kamal underscored the importance of the Dialogue in tackling market access issues, promoting investment, and increasing trade under the UK's Developing Countries Trading Scheme (DCTS). The minister also welcomed the formation of the UK-Pakistan Business Advisory Council (UKPBAC) and urged better coordination between diaspora entrepreneurs and chambers of commerce. Opportunities for collaboration were noted in key sectors including renewable energy, ICT, agriculture, and higher education. Both sides committed to boosting parliamentary links and exploring regular exchanges to advance political and economic relations.
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
28-06-2025
- Business
- Business Recorder
PNSC eyes $700mn freight earnings amid fleet expansion
Pakistan National Shipping Corporation (PNSC) is expected to generate an estimated $700 million in freight earnings by expanding its cargo fleet to 34 vessels over the next three years. This was announced during a high-level meeting chaired by Federal Minister for Maritime Affairs, Muhammad Junaid Anwar Chaudhry, on Friday, read a statement. During the meeting, the minister was informed that PNSC currently manages approximately 11% of the country's cargo by volume and 4% by value. The national carrier is now targeting to increase its cargo handling to 52% by volume and 43% by value (excluding containerised cargo) within three years. PNSC is Pakistan's national flag carrier, primarily engaged in the transportation of dry bulk and liquid cargoes globally. It was established in 1979 by merging the National Shipping Corporation (NSC) and the Pakistan Shipping Corporation. PNSC operates under the Ministry of Maritime Affairs, Government of Pakistan. Presenting the business plan, the federal minister emphasised the need for PNSC to evolve into a globally competitive, technologically advanced, and environmentally sustainable organisation aligned with international maritime benchmarks. Pakistan to lease ships for PNSC to curb $4bn forex drain As per the statement, the government plans a phased renewal and expansion of PNSC's ageing fleet to enhance cargo capacity, fuel efficiency, and compliance with International Maritime Organization (IMO) standards, including those governing carbon emissions and ballast water management. The minister proposed deepening collaboration between PNSC, Karachi Shipyard & Engineering Works, and local industries for the domestic construction of modern cargo vessels, oil tankers, and container carriers. To fund the modernisation efforts, the plan advocates leveraging public-private partnerships, maritime leasing models, and tapping into global green shipping funds. The minister also underscored the need for digital transformation in maritime operations. This includes the adoption of platforms such as Pakistan Single Window (PSW), Vessel Traffic Management Systems (VTMS), blockchain-based documentation, e-logistics solutions, and real-time cargo tracking systems—measures aimed at enhancing transparency, efficiency, and security. Environmental sustainability remains central to the reform agenda.
Express Tribune
28-06-2025
- Business
- Express Tribune
PNSC eyes $700m freight earnings in 3 years
Pakistan National Shipping Corporation (PNSC) aims to generate an estimated $700 million in freight earnings by expanding its fleet to 34 vessels over the next three years, according to a statement released on Friday. The announcement was made during a high-level meeting chaired by Federal Minister for Maritime Affairs, Muhammad Junaid Anwar Chaudhry, outlining a new business strategy to revitalise the maritime and logistics sectors. The meeting was informed that PNSC currently handles around 11% of the country's cargo by volume and 4% by value. The national carrier is now targeting a substantial increase in its cargo share to 52% by volume and 43% by value, excluding containerised cargo, within three years. Presenting a forward-looking business plan, the minister described PNSC as central to enhancing Pakistan's maritime capabilities. He stressed the need for it to evolve into a globally competitive, technologically advanced, and environmentally sustainable entity aligned with international maritime standards. A key feature of the plan is the phased renewal and expansion of PNSC's aging fleet to boost cargo capacity, improve fuel efficiency, and ensure compliance with International Maritime Organisation (IMO) standards, including regulations on carbon emissions and ballast water management. To promote self-reliance, the minister proposed stronger collaboration between PNSC, Karachi Shipyard & Engineering Works, and local industries to enable domestic construction of modern cargo ships, oil tankers, and container vessels. This initiative is expected to generate skilled employment, strengthen local supply chains, and revive Pakistan's shipbuilding sector. The expansion plan also recommends leveraging public-private partnerships, maritime leasing models, and international green shipping funds to support modernisation without burdening the national budget. Digital transformation was highlighted as another key priority. The plan includes adoption of the Pakistan Single Window (PSW), Vessel Traffic Management Systems (VTMS), blockchain-based documentation, e-logistics solutions, and real-time cargo tracking to improve transparency and operational efficiency. Environmental sustainability is central to the agenda, with PNSC set to adopt cleaner fuels, retrofit vessels for energy efficiency, and align with global decarbonisation goals. Chaudhry reaffirmed PNSC's strategic role in securing maritime sovereignty, economic stability, and resilient supply chains amid global uncertainty.
Business Recorder
16-06-2025
- Business
- Business Recorder
Exporters in PSW system: SBP amends ‘undertaking' for payments via ADs
KARACHI: In light of evolving business dynamics and recent system upgrades, the State Bank of Pakistan (SBP) has amended the undertaking/declaration required from exporters in the Pakistan Single Window (PSW) system for receipt of payments through authorized dealers (ADs). As per instructions contained in Para 5(ii) and 15B(ii) of Chapter 12 (Exports) of Foreign Exchange Manual, whereby exporters of goods are required to file Undertaking/Declaration in PSW system for receipt of payments through an AD, as prescribed by the State Bank of Pakistan. The undertaking/declaration for exports were earlier part of the Manual E-Form/Electronic Form-E (EFE). Now, considering the evolving business dynamics and system upgradations, the SBP has decided to amend the Undertaking/Declaration and accordingly the new format has been issued. PSW designated as FBR's technology partner for WeBOC System The SBP has advised ADs to obtain the revised Undertaking/Declaration from the exporters through the PSW system at the time of initiating their respective export transactions. Further, to mitigate any potential legal risks, ADs may obtain the revised Undertaking/Declaration duly signed by Exporters in manual form as well. ADs are also directed to bring these instructions to the notice of all their constituents and ensure meticulous compliance. The SBP has issued the following revised undertaking/declaration: An incorrect declaration constitutes an offence under Pakistan Penal Code 1860, Foreign ExchangeRegulation Act, 1947 (VII of 1947), Customs Act 1969, and Anti Money Laundering Act 2010. I/We, hereby declare that I/We am/are the sellers/consignors/exporters of the goods described herein in respect of which this declaration is made out and that the particulars given in the Financial Instruments are true and that the invoice value declared in the Financial Instruments in case of firm contracts is full value as contracted with the buyers/in case of consignment sale is a fair value of goods which are being shipped on consignment sale. I/We undertake that I/we shall deliver to the AD the foreign exchange proceeds resulting from the export of these goods, on the due date as per contractual maturity or within such time period as maybe prescribed by State Bank of Pakistan, from the date of shipment/dispatch whichever is earlier. In the event of consignment sale, we undertake to furnish to the AD a fully documented account sale certified by the consignees /Chamber of Commerce of the country of import or any other documents required by the State Bank of Pakistan. I/We declare that nothing material or relevant to the information has been omitted or suppressed and whatever is stated herein is true to my/our knowledge and belief. I/We undertake to submit to the AD within fourteen days of shipment, the documents for negotiation/for sending on collection. I/We hereby expressly authorize the State Bank of Pakistan (SBP) to share my/our outstanding overdue information with ADs/ banks, for the purpose of conducting due diligence related to my/our export activities (Irrespective of the fact whether the same is challenged before a Court or otherwise).I/We also permit the ADs/banks to access my/our outstanding overdue information available on the Exporter's Information Portal (EIP) maintained by SBP. Copyright Business Recorder, 2025
