NEDB calls for provinces to eliminate export cess

The National Export Development Board (NEDB) has urged provincial governments to eliminate the export cess imposed on goods, a measure it claims undermines Pakistan’s competitiveness in international markets by inflating export costs. 

In a meeting led by Commerce Minister Jam Kamal, stakeholders, including officials from the Finance Division, Federal Board of Revenue (FBR), Board of Investment (BoI), and representatives from all provinces, addressed this and other key issues affecting exporters.

The provincial infrastructure cess, levied on export goods, was a central point of discussion, with NEDB members highlighting its adverse effects on the country’s trade potential. 

Recently, Minister Kamal sent letters to provincial chief ministers, particularly of Sindh and Khyber Pakhtunkhwa, urging them to reconsider the levy due to its impact on trade. Punjab and Sindh responded, but replies from Khyber Pakhtunkhwa and Balochistan are pending.

The NEDB plans to present these recommendations to Prime Minister Shehbaz Sharif in an upcoming meeting, where decisions to dismantle export barriers are anticipated. 

Kamal emphasized the need for unified federal and provincial support, noting that the Ministry of Commerce has actively worked to address export challenges, though progress from other departments has been slow.

Additionally, the Board reviewed export profiles and action plans for growth in key sectors with input from 16 sector councils. These councils play a vital role in tackling cross-cutting issues across industries to drive export growth. 

Minister Kamal reaffirmed the government’s commitment to supporting the export sector and streamlining processes for enhanced efficiency.

In a separate meeting, Kamal discussed bolstering Pakistan’s shipping industry with Parliamentary Secretary of Commerce Dr. Zulfiqar Ali Bhatti and Vice Admiral Ahmed Saeed, President of the National Institute of Maritime Affairs. 

The group examined strategies for developing a robust shipping sector, with Saeed calling for the industry to gain formal recognition, which could attract investment and establish Pakistan as a regional logistics hub.

With Pakistan’s export sector under pressure from high production costs and global competition, business leaders and trade bodies have echoed calls for easing fiscal policies. 

Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), recently called for the immediate removal of the infrastructure cess. 

Sheikh stressed that the added cost of this levy has hindered businesses, urging provincial governments to reconsider their stance to enable Pakistan to compete on a global scale effectively.