Islamabad: The National Assembly Standing Committee on Commerce on Wednesday reviewed tariff reforms, export promotion measures, the performance of key trade-related entities, the Export Development Fund (EDF), proposed legislative amendments, and Pakistan’s trade relations with major trading partners.
The committee was met under the chairmanship of Member National Assembly (MNA) Muhammad Jawed Hanif Khan, the committee was apprised that approximately Rs120 billion in in tariff benefits had been passed on to industry during the year under the ongoing traffic reforms, aimed at supporting domestic production and enhancing competitiveness, said a news release.
The Ministry of Commerce informed the Committee that previous tariff reductions had contributed to an estimated US$1. 27 billion increase in exports.
The Chairman underscored that tariff rationalization should not be perceived merely as a concession to industry, but as a strategic measure aimed at reducing excessive taxation, lowering input costs and strengthening the international competitiveness of Pakistani products.
The Committee undertook a detailed review of the restructuring of the Export Development Fund (EDF). It was apprised that the Fund’s management had transitioned towards greater private-sector participation, with leading exporters playing a central role in determining priorities.
The Committee appreciated the policy emphasis on initiatives having a direct and measurable linkage with export enhancement, rather than conventional infrastructure-oriented projects.
The Committee also examined the 40 percent allocation of the Export Finance Scheme (EFS) portfolio for Small and Medium Enterprises (SMEs) and emphasized the importance of ensuring equitable and adequate access to export financing for smaller businesses.
The Committee also examined the performance and investment strategy of the Pakistan Reinsurance Company Limited (PRCL). The Committee was informed that PRCL retained approximately 30 percent of its risk, while around 70 percent was placed in international reinsurance markets, including London, Dubai and Singapore.
The Chairman stressed the need for prudent optimization of the company’s resources and called for exploration of avenues to enhance returns while maintaining sound risk-management practices.
The Committee considered a Private Member’s Bill proposing amendments to the Trade Organizations Act, The Trade Organizations (Third Amendment) Bill, 2026, in relation to the Karachi Chamber of Commerce and Industry (KCCI).
During deliberations, the distinctive status of KCCI and the proposed exemption from certain district-based provisions were examined. The Chairman directed that the proposed amendments be appropriately formulated in legal terms in consultation with the Ministry of Commerce and the Ministry of Law and Justice before being placed before the Committee for further consideration.
The Committee expressed serious concern over Pakistan’s persistent trade deficit with China and other Free Trade Agreement (FTA) partners and called for a comprehensive assessment of the underlying factors contributing to the imbalance.
The Committee further directed that relevant information concerning the Saindak project and mineral exports be furnished to enable an assessment of whether Pakistan was deriving an appropriate economic return from its mineral resources.
The Committee was also apprised of the proposed GSP Plus scheme commencing from 1 January 2027, including the applicable transition period and compliance requirements.
The Chairman directed the Ministry of Commerce to furnish a detailed briefing on Pakistan’s preparedness, including the opportunities, challenges and measures required to maximize the benefits of the scheme.
The Committee reviewed the financial position of the Trading Corporation of Pakistan (TCP) and expressed concern over its outstanding markup liabilities.
The Committee directed that the matter be taken up with the Ministry of Finance and the State Bank of Pakistan, and sought a comprehensive briefing on the outstanding liabilities and the measures proposed for their settlement.
For further consideration and effective parliamentary oversight, the Committee directed the Ministry of Commerce to furnish detailed presentations and comprehensive reports on the Export Development Fund, GSP Plus, Pakistan’s trade deficit with China, Malaysia and Indonesia, and mineral exports.
In order to strengthen engagement with relevant stakeholders and facilitate on-ground assessment of trade-related institutions, the Committee decided to hold its next meeting in Karachi, including site visits and detailed briefings at the offices of the Trade Development Authority of Pakistan (TDAP) and the Trading Corporation of Pakistan (TCP).
The Committee meeting concluded with a vote of thanks by the Chair to the members for their valuable participation and contributions to the deliberations.
The meeting was attended by MNAs, Shaista Pervaiz, Kiran Haider, Tahira Aurangzeb, Khurshid Ahmed Junejo, Mirza Ikhtiar Baig, Asad Alam Niazi, Dr. Ramesh Kumar Vankwani, Mir Amir Ali Khan Magsi in person and Dr Farooq Sattar Mover of the Bill also attended the meeting.
The senior officers from Ministry of Commerce, Ministry of Law and Justice and National Assembly Secretariat were also present in the meeting.
