ISLAMABAD: The Standing Committee on Commerce deliberated on the tenure of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) representatives in its recent meeting at the Parliament House, chaired by Mr. Muhammad Jawed Hanif Khan, MNA. The Committee reviewed amendments to the Trade Organization Act, 2013, and the Trade Organization Rules, 2013, which had reduced the tenure of FPCCI representatives elected in 2024 from two years to one.
The Committee acknowledged the sensitivity of the issue, as multiple chambers were involved. The FPCCI requested an extension to align with the general chamber elections scheduled for 2026. The Chairman emphasized the importance of addressing the legitimate expectations of representatives, while the Secretary of Commerce noted that an exemption provision could provide a temporary solution. The Committee deliberated on whether to restore the original two-year tenure and proposed a one-time extension through an amendment to the Trade Organization Act.
Later the committee recommended that FPCCI’s tenure be extended by one year one time, through an amendment to the Trade Organization Act.
The Committee also discussed the impact of the Export Facilitation Scheme (EFS) on the metal and steel sectors. The scheme, which allows duty-free imports for export-oriented units, has faced issues related to misuse and discrepancies, particularly in the steel sector. Concerns were raised over a recent SRO issued by the Federal Board of Revenue (FBR) on February 25, 2025, which sought to exclude the steel sector from EFS benefits. The FBR clarified that the move aimed to curb duty evasion and irregularities, but stakeholders urged further consultation before finalizing any decision.
The Chairman expressed concern over more than 1,000 containers stuck at the port due to changes in the scheme, underscoring the urgency of a resolution. The Committee proposed that the matter be resolved swiftly, with continued consultations to ensure a balanced and fair outcome. It also recommended exempting copper from duties while applying levies on iron and steel.
The meeting concluded with a decision to put the exclusion of the steel sector from the Export Facilitation Scheme on hold until the Prime Minister’s Committee provides further recommendations. The Chairman reiterated the importance of considering all stakeholders’ concerns before implementing any final decision.
The meeting was attended by MNAs Mr. Muhammad Mobeen Arif, Mr. Usama Ahmed Mela, Dr. Mirza Ikhtiar Baig, Mr. Asad Alam Niazi, Mr. Muhammad Ahmed Chattha, Ms. Tahira Aurangzeb, Ms. Kiran Haider, Mr. Gul Asghar Khan, and Mr. Rana Atif in person, while Ms. Shaista Pervaiz participated virtually. Senior officials from the Ministry of Commerce, DGTO, FBR, and FPCCI were also present.
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