Mission Impossible - Pakistan government sets export target of $60 billion

Mission Impossible - Pakistan government sets export target of $60 billion

By: Communicators - Business Team (July 16, 2024)

The government has set a new ambitious export target of $60 billion over the next three years despite changes to the tax structure in the budget that have sparked widespread discontent among the country’s exporters.

According to details, Minister for Commerce has started deliberations on rationalization of import tariffs to achieve the export target of $ 60 billion. Commerce Ministry has recently showed its wrath against the Finance Ministry and the Federal Board of Revenue (FBR) for not making its export growth-related recommendations part of the federal budget 2024-25, despite the fact that those already sailed through Tariff Policy Board (TPB), an inter-ministerial body which takes decisions on revision of tariffs on goods.

Federal Minister for Commerce recently chaired the inaugural meeting of high level committee formed by Prime Minister to focus on tariff rationalization aimed at achieving an export target of $60 billion by 2027-28. According to an official statement, recognizing the complexity and extensive scope of the task, the Minister constituted three Sub-Committees to expedite the process. These Sub-Committees are tasked with providing detailed recommendations to the main committee, which will then present a finalized report to Prime Minister.

During the meeting, the Commerce Minister emphasized the technical nature of the subject and the need for comprehensive consultation with experts from both the private and public sectors. Given the intricacy of the topic, Commerce Ministry requires ample time for thorough deliberation, incorporating insights from all stakeholders. The official statement claims that session also saw contributions from Federal Minister for Industry and Production, and Minister of State for Finance, Revenue, and Power, both of whom concurred with the Commerce Minister’s approach.

They proposed forming working groups of technical experts from various sectors to handle specific Terms of Reference (ToRs). The meeting was attended by secretaries of relevant ministries, Chairman Federal Board of Revenue (FBR) and other members of the main committee. The committee’s ToRs include reviewing existing proposals, suggesting short to long-term tariff rationalization measures, and devising a comprehensive plan to reach the export target. The Ministry of Commerce will act as the secretariat for the committee, which is expected to finalize its recommendations in two weeks.