ISLAMABAD:
Prime Minister Shehbaz Sharif has set up eight new task forces to save exports and industry from a complete “collapse” after several of his mostly foreign-funded economic plans failed to revive investment and growth.
The groups, which focused on industrialization, exports, taxation, transportation, dumping of cheaper foreign goods and agriculture, were created after the country’s leading industrialists warned him of the dire consequences of “collapse” exports. The new working groups consist of industry representatives, officials and members of the Special Investment Facilitation Council (SIFC). Officials said the prime minister acted after five ongoing plans failed to deliver results or restore investor confidence.
The plans include the International Monetary Fund (IMF) program, the World Bank’s 10-year framework, Ahsan Iqbal’s locally developed Uraan Pakistan plan and economist Stefan Dercon’s roadmap for national economic transformation.
Deputy Prime Minister Ishaq Dar, who already heads 82 committees, most 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 forms 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.
After their presentation, the Prime Minister’s Office directed that the new working groups “propose measures that will enable Pakistani companies to become more competitive and produce value-added goods and services.”
According to the official order, the groups will recommend ways to diversify exports, attract investment, create jobs and sustain inclusive economic growth. Each group has been given the task of preparing a presentation to the Prime Minister with results and timetables for the next meeting.
Sources said the prime minister was informed that the export crisis was both real and urgent. Industrialists warned that exports had become economically unviable and economically irrational, causing collapsing foreign exchange earnings, job losses and eroding competitiveness.
They said domestic politics had made exports “economically irrational” and forced industries to shut down not because of lack of orders but because of politically induced impossibility.
A key issue is the steep rise in gas tariffs for the export industry, an increase of more than 300% in just two to three years, which has destroyed Pakistan’s cost competitiveness. The suspension of gas supply to tied power plants has crippled production at export units that rely on uninterrupted power, while excess gas availability has led to the loss of capacity payments for idle power plants, penalizing efficient users and rewarding systemic inefficiency. Foreign export entities are forced to switch to an expensive and unreliable grid or invest in CAPEX for new energy options, according to the briefing.
Industrialists said the government’s carbon tax on fuel imports had further threatened Pakistan’s competitiveness by making products more expensive abroad. They also opposed the 10% non-refundable import duty on yarn and greige fabrics, which are essential for textile exports.
Exporters also raised concerns over the overvalued exchange rate, which they said is due to under-declared imports artificially strengthening the rupee. This, they argued, makes Pakistani exports more expensive in global markets while keeping imports unrealistically cheap at home.
The Express Pakinomist recently reported a $30 billion discrepancy in trade data over the past five years.
Industrialists further noted that delayed sales tax refunds, often used to inflate declining revenue figures, are causing a severe liquidity crunch. The resulting lack 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 leading exporter, Musadaq Zulqarnain. Members include Shahzad Saleem, Arif Saeed, Misbah Naqvi, PM’s Agriculture Coordinator Ahmed Umair, former Commerce Minister Sualeh Faruqui and current Commerce Minister Jawad Paul.
The second working group will focus on customs, trade, customs and dumping of Chinese goods in Pakistan. It will be headed by Muhammad Ali Tabba of Lucky Cement. Members include Zulqarnain, Ziad Bashir, Dr. Muhammad Saeed from the International Trade Center, 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 deal with income tax issues with Shahzad Saleem as its chairman. Its members are Ziad Bashir, Asif Peer, MNA Riazul Haq Jujj and FBR Chairman Rashid Langrial.
The fourth working group will deal with railway matters and will be chaired by Ziad Bashir of Gul Ahmed Textile Mills. Members include Saira Awan, Pir Saad Ahsanuddin, Ashfaq Khattak, Railway Secretary Syed Mazhar Ali Shah and NLC Director General Maj Gen Farrukh Shahzad Rao.
The fifth group, also headed 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 DG Maj Gen Rao.
Pakistan’s ports, despite their strategic location, currently function as feeder terminals rather than active trade hubs. This inefficiency adds seven to ten days to delivery times, causing lost orders as buyers switch to faster suppliers. The resulting increase of $200-$300 per container wipes out already thin profit margins.
Experts estimate annual losses of $2-3 billion from transhipment cargo that should be handled domestically.
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 Industries Minister Saif Anjum.
The Agriculture Working Group will be chaired by Rana Nasim Ahmed, with members including Prime Minister’s Agriculture Coordinator Ahmed Umair, Ali Mukhtar, Dr. Zeelaf Munir, Dr. Syed Zahoor Hassan, Chela Ram Kewlani and Food Security Secretary Amir Mohyuddin. However, a farmer’s representative has not been included.
The Energy Group will be headed by Shahzad Saleem of Nishat Chunian Power, with members Arif Saeed, Ziad Bashir, Rehman Nasim, Power Secretary Dr. Muhammad Fakhre Alam Irfan and Petroleum Secretary Momin Agha. Business has proposed introducing a uniform tariff for all industries in Pakistan, eliminating preferential tariffs for any sector or region to reduce the high cost of doing business.
It has also called on the government to scrap the 10% super tax, noting that it adds to an already heavy tax burden and discourages reinvestment in manufacturing capacity, technology upgrades and business expansion.
