NA commerce panel to seek Defence, Interior, Foreign Office, SBP briefings on stagnant regional exports

The National Assembly Standing Committee on Commerce has decided to seek detailed briefings from the Ministries of Defence, Interior and Foreign Affairs, as well as the State Bank of Pakistan (SBP), over stagnation and decline in Pakistan’s exports to regional countries.

As per media reports, the decision was taken during a meeting chaired by Jawed Hanif Khan while discussing a calling attention notice questioning the lack of export growth. Members observed that despite improved diplomatic ties with neighbouring countries, trade volumes remain negligible. 

Concerns were also raised about the government’s $60 billion export target, noting that exports have remained between $25–30 billion for nearly two decades.

The committee chairman remarked that regional trade appears to be influenced by security considerations and supported inviting the relevant ministries for comprehensive briefings. The panel agreed to call officials from all concerned institutions.

During the meeting, the committee endorsed the Ministry of Commerce’s decision to allocate Rs15 billion from the Export Development Fund (EDF) to support rice exporters. Officials informed the committee that rice exports have declined by around 50%, contributing to an overall export shortfall of $1.4 billion, with nearly 60% of the decline attributed to the rice sector.

The support package aims to facilitate approximately $1 billion in rice exports amid global oversupply and increased competition following India’s return to export markets. The EDF Board approved the allocation on January 19, 2026, and the scheme applies to shipments made from January 23, 2026 to June 30, 2026, subject to full realization of export proceeds. The initiative will be digitally managed through Pakistan Single Window in coordination with SBP and customs authorities.

The committee also reviewed the proposed Expo Centre Quetta project, approved at a cost exceeding Rs4.629 billion, and raised concerns about its location and funding delays. It linked approval of a Rs3 billion export acceleration initiative for SMEs to clearance from the Ministry of Planning.

Officials from the Planning Ministry stated that the Public Sector Development Programme (PSDP) allocation for 2025–26 stands at Rs1,000 billion and funds are released based on priorities.

Members further discussed structural challenges affecting exports, including high production costs, energy constraints, taxation policies, provincial cess, and foreign exchange limitations. The committee emphasized the need for inter-ministerial coordination and informed decision-making to address regional trade and security considerations.

The panel also reviewed the performance of National Insurance Company Limited (NICL), noting real estate assets valued at Rs25 billion, including properties in Dubai worth Rs4.6 billion. Investment policies and governance matters were discussed.

The gems and jewellery sector was also taken up, with members noting estimated reserves valued at $450 billion and highlighting issues such as illegal gold exports and lack of hallmarking. Proposals for regulatory reforms and export promotion measures were referred to the Commerce Ministry for evaluation.

The committee directed that senior SBP officials present concrete solutions in the next meeting on remittance and regulatory issues affecting gold and gemstone exports, and stressed the need for coordinated efforts to boost exports and economic growth.