ISLAMABAD:
Prime Minister Shehbaz Sharif has constituted eight new task forces to rescue exports and industries from complete “collapse” after several of his economic plans, mostly funded by foreign funds, failed to revive investment and growth.
The groups, focusing on industrialisation, exports, taxes, transport, dumping of cheaper foreign goods and agriculture, were created after the country’s leading industrialists warned of the dire consequences of the “collapse” of exports. The new working groups are made up of industry representatives, government officials and members of the Special Investment Facilitation Council (SIFC). Officials said the prime minister acted after five ongoing schemes failed to deliver results or restore investor confidence.
The plans include the International Monetary Fund (IMF) programme, the World Bank’s ten-year framework, Ahsan Iqbal’s indigenously developed Uraan Pakistan plan and economist Stefan Dercon’s national economic transformation roadmap.
Deputy Prime Minister Ishaq Dar, who already heads 82 committees, mostly related to governance and economic management, has completed work on 45 of them.
This week, industrialists told the prime minister that Pakistan’s crucial export sector “is collapsing”, warning that it provides the backbone of foreign exchange earnings, industrial employment and national productivity.
They argued that the crisis is not driven by weak global demand but by domestic policies that make exports uncompetitive.
Following its presentation, the Prime Minister’s Office ordered that the new working groups “suggest measures that will enable Pakistani companies to be more competitive and produce value-added goods and services.”
According to the official order, the groups will recommend ways to diversify exports, attract investments, create jobs and sustain inclusive economic growth. Each group has been tasked with preparing presentations for the prime minister with results and timelines at the next meeting.
Sources said the prime minister was informed that the export crisis was real and urgent. Industrialists warned that exporting had become financially unviable and economically irrational, causing foreign exchange earnings to collapse, job losses and the erosion of competitiveness.
They said domestic policies had made exporting “economically irrational”, forcing industries to close not for lack of orders but due to policy-induced impossibilities.
A key issue is the sharp increase in gas tariffs for export industries, more than 300% in just two to three years, which has destroyed Pakistan’s cost competitiveness. Suspension of gas supply to captive power plants has paralyzed production at export units that rely on uninterrupted power, while excess gas availability has led to capacity payment losses for idle power plants, penalizing efficient users and rewarding systemic inefficiency. According to the report, foreign export units are forced to switch to an expensive and unreliable grid or invest in CAPEX for new energy options.
Industrialists said the government’s carbon tax on fuel inputs had further threatened Pakistan’s competitiveness by making products more expensive abroad. They also opposed the 10% non-refundable import tax on raw yarn and fabrics, essential for textile exports.
Exporters also expressed concern over the overvalued exchange rate, which they say is due to underreported imports that artificially strengthen the rupee. They argued that this makes Pakistani exports more expensive in global markets while keeping imports unrealistically cheap in the country.
The Express PAkGazette recently reported a $30 billion discrepancy in trade data over the past five years.
Industrialists further pointed out that delays in sales tax refunds, often used to inflate falling revenue figures, are causing a serious liquidity crisis. The resulting shortage of working capital has forced many exporters to cut production and miss international shipping deadlines.
A working group on Export Development Fund (EDF) issues has been formed under the chairmanship of Pakistan’s top exporter Musadaq Zulqarnain. Members include Shahzad Saleem, Arif Saeed, Misbah Naqvi, Prime Minister’s Agriculture Coordinator Ahmed Umair, former Commerce Secretary Sualeh Faruqui and current Commerce Secretary Jawad Paul.
The second working group will focus on customs, trade, tariffs and dumping of Chinese products in Pakistan. It will be chaired by Muhammad Ali Tabba of Lucky Cement. The members include Zulqarnain, Ziad Bashir, International Trade Centre’s Dr Muhammad Saeed, Dr Ijaz Nabi, Dr Robina Athar, Commerce Secretary Jawad Paul, FBR member Syed Shakeel Shah and senior FBR officials Arshad Jawad and Imran Mohmand.
The third group will handle income tax matters, with Shahzad Saleem as the chairman. Its members are Ziad Bashir, Asif Peer, MNA Riazul Haq Jujj and FBR Chairman Rashid Langrial.
The fourth task force will deal with railway matters and will be headed by Ziad Bashir of Gul Ahmed Textile Mills. The members include Saira Awan, Pir Saad Ahsanuddin, Ashfaq Khattak, Railway Secretary Syed Mazhar Ali Shah and NLC Director General Major General Farrukh Shahzad Rao.
The fifth group, also chaired by Bashir, will oversee port operations. The members include Maritime Affairs Secretary Syed Zafar Ali Shah, Defense Ministry Additional Secretary, Gwadar Port Authority Chairman Noorul Haq Baloch and NLC Director General Major General Rao.
Pakistan’s ports, despite their strategic location, currently function as feeder terminals rather than active commercial hubs. This inefficiency adds seven to ten days to shipping times, causing lost orders as buyers turn to faster suppliers. The resulting increase of between $200 and $300 per container eliminates already slim profit margins.
Experts estimate annual losses of between 2,000 and 3,000 million dollars due to the transshipment of cargo that would have to be handled in the country.
The sixth group on industrialization will be chaired by Saquib Sherazi of Atlas Honda Limited. Its members include Abbas Akberali, Ahsan Zafar Syed, Ali Habib, Nauman Wazir Khattak, Muhammad Kamran Kamal, Osman Saifullah and Industry Secretary Saif Anjum.
The task force on agriculture will be chaired by Rana Nasim Ahmed, and its members include Prime Minister’s Agriculture Coordinator Ahmed Umair, Ali Mukhtar, Dr Zeelaf Munir, Dr Syed Zahoor Hassan, Chela Ram Kewlani and Secretary Food Security Amir Mohyuddin. However, no farmer representatives have been included.
The energy group will be led by Shahzad Saleem of Nishat Chunian Power, with members Arif Saeed, Ziad Bashir, Rehman Nasim, Energy Secretary Dr Muhammad Fakhre Alam Irfan and Petroleum Secretary Momin Agha. The business community has proposed introducing a uniform tariff for all industries in Pakistan, eliminating preferential rates for any sector or region to reduce the high cost of doing business.
It has also urged the government to abolish the 10% supertax, noting that it adds to an already heavy tax burden and discourages reinvestment in productive capacity, technological improvements and business expansion.
