Senate committee approves ban on raw mineral exports

The Commerce Ministry contends that such a decision could convey a negative message to those who have invested in the country

The Senate panel endorsed a ban on the export of both metallic and non-metallic minerals, including raw pink salt.

The approved Private Members Bill, presented by PTI Senators Zeeshan Khanzada, Senator Faisal Saleem Rehman, and Senator Abdul Qadir, received majority approval of 5:1.

Senator Nuzhat Sadiq proposed further deliberations, while Senator Palwasha Muhammad Zai Khan from PPPP supported the bill.

The bill prohibits the export of raw minerals, encompassing granite and marble, excluding those governed by G2G (Government-to-Government) pacts under the Special Investment Facilitation Council (SIFC) framework.

The Commerce Ministry, represented by Additional Secretary Syed Hamid Ali, did not back the bill, asserting that existing regulations already empower the government to impose bans on specific items under the Imports and Exports (Control) Act, 1950.

The approved bill outlines that the Federal Government can restrict the export of raw minerals, emphasizing the establishment of refineries in Pakistan and prescribing value additions for end products.

The Commerce Ministry contends that such a decision could convey a negative message to investors, including those like M/s Barrick Gold, who have invested in the country.

Commerce Ministry’s written response suggested dealing with the matter in Export Promotion Ordinance (EPO) rather than amending the Imports and Exports (Control) Act, 1950.

The ministry argued that the Act already grants authority to the Federal Government to regulate trade.

During the session, the committee also discussed the Private Members’ Imports and Exports (Control) Amendment Bill, 2023, with Deputy Chairman Senator Mirza Muhammad Khan Afridi expressing appreciation for the emphasis on value addition in exports.

The committee acknowledged the time-consuming nature of the process but highlighted its long-term benefits.

 

17 COMMENTS

  1. certainly a bad decision, if passed this Bill would dent already ailing Economy of Pakistan. Firstly, there is no infrastructure in Country to support processing plants.Secondly, Value Addition can be done only by expensive processing plants which can be installed with foreign investor’s collaboration only and present enviornment in Country is not favourable. Thirdly, Electricity rates ate so high that processed minerals will not be able to compete in World markets.

  2. We are trying to follow Afghanistan. The Crow portrayed the pheasant and forgot his own way to walk. A good decision but absolutely premature. The pros and cons were not considered and this decision will further hit the little exports leading to decline in Foreign Exchange. The cost of inputs are too high leading to a very high cost of production making it difficult to compete in the international markets. The technology is immature. From a block of marble, granite or onyx. about 90% is recovered in the Chinese industries whereas in Pakistan the recovery rate is only 55%. e.g. In China, the Slabs are produced and from the waste, tiles of bigger and smaller sizes are produces, from the chips left from the production of tiles, it is powered for use elsewhere. An absolutely premature decision and I hope that they realise it soon enough to reverse it. Or, Possible that they want to patronise a few individuals who can then buy the raw material quite cheap, process and export the finished product. *This decision is against the interest of the country.*

  3. HI Every one, can any one confirm , this banned is talking aboul only granite and marbles of raw minerals, but those companies who are sending eadible himalayan rock salt in coarse and fine that is not the part of this ordanance
    Right????
    Please confirm thanks

  4. very bad decision.
    Pakistan Mine Owners Association Punjab
    strongly condemned this decision.
    Exporters of Minerals are requested, Please contact with us PMOA Punjab,and PMMA for further program of protest if required .
    regards.
    Malik Zahid Altaf Awan
    secretary General
    Pakistan Mine owners Association Punjab.
    03006073379

  5. In Pakistan we haven’t enough opertunities/backups for value addition in Minerals business’ This decision will badly effect our export bussingrowth’ at the time we facing economic crisis.

  6. very bad decision.
    Pakistan Mine Owners Association Balochistan,Punjab,koi,gilgat
    strongly condemned this decision.
    Exporters of Minerals are requested

  7. Dear Concerned,
    if this ban comes in it will render hundred of thousands Mine workers job less, it will hit National ex-chequer, it will throw Pakistan out of Mineral exporters list.

    Despite great challenges the extraction of minerals like Oron ore, Chromite, Bauxite, Silica, Pink Salt, Marble & Granite, Phosphate,Magnesium Oxide, Quartz, and many others have just taken off the ground, this decion will prove as a noose in neck of this important & neglected Industry.
    Such decisions should be left to a full fledged Parliament which is not existing at the moment!

  8. Good Decision in the interest of Afghanistan India As Because Afghanistan and India has the highest reserves of All the minerals Allah bless them you all who make the decision for prosperity of Afghanistan and India. Very very childish decision as we don’t have Basic Electricity Gas Water and talking about the industry Not even honest labour and where the bank interest rates 23% It seems the task given to people put the last nail on the coffin box I pray may Allah help us and do some miracle to help the people of Pakistan

  9. Such a bad decision from the sinette comittee. I truely condemn it and they are litterally wasting the minerals the soil of pakistan has.What is the reason behind it because we have invested in it.How will they recover the money?
    they have banned it but what are the future plans on it.They shouldgive further future guidlines. Regards, Mubeen Alam 0333 4301320 Lahore Pakistan

  10. The rulers of our country have lost their minds. This is injustice to the people and we will challenge the law against it.

  11. Appraintly good decision but will create so many issues. The baan is on the export of raw minerals, so the export of minerals after value addition is allowed. Here the question is this ! whether there is any relaxed tarrif of electricity / gas for processing of minerals ??? If not then this baan is just to create hurdle in the export of such items and to push the people doing business in this sector to contact the authorities and offer bribe to remove baan. Please for the God Sake ! first facilitate then impose any baan. Sheikh Naeem Ahmad Shipping Solutions International 0331 4732922

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