The National Assembly’s Standing Committee on Commerce decided on Tuesday to delay the exclusion of the steel sector from the Export Facilitation Scheme (EFS) until further recommendations are provided by a committee formed by the Prime Minister. The committee emphasized the importance of addressing the concerns of all stakeholders before making a final decision.
The EFS allows duty-free imports for export-oriented units but has faced criticism for misuse, particularly within the steel sector. Concerns were raised about a recent SRO issued by the Federal Board of Revenue (FBR) on February 25, 2025, which sought to exclude the steel sector from the EFS.
The committee, chaired by Muhammad Jawed Hanif Khan, met at the Parliament House to discuss the potential impact of the EFS on the metal and steel sectors.Â
The FBR clarified that the exclusion was intended to address issues of duty evasion and irregularities in the sector. However, stakeholders urged that further consultations be held before making a final decision. The committee chairman expressed concern over more than 1,000 containers being held up at the port due to the changes in the scheme, stressing the urgency of resolving the matter.
The committee proposed that the issue be addressed quickly and that consultations with stakeholders continue to ensure a fair and balanced outcome. It also suggested that copper be exempt from duties, while iron and steel should be subject to them.
