ISLAMABAD:
Prime Minister Shehbaz Sharif has formed eight new task forces to save exports and industries from complete “collapse” after several of his mostly foreign-funded economic plans failed to revive investment and growth.
These groups, focused on industrialization, exports, taxation, transportation, 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 plans failed to yield results or restore investor confidence.
These plans include the International Monetary Fund (IMF) program, the World Bank’s 10-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, 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 caused by weak global demand but by domestic policies that make exports uncompetitive.
Following their presentation, the Prime Minister’s Office ordered that the new task forces “suggest measures to enable Pakistani businesses 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 support inclusive economic growth. Each group was tasked with preparing presentations for the Prime Minister with the results and deadlines for the next meeting.
Sources said the prime minister had been informed that the export crisis was both real and urgent. Manufacturers have warned that exporting has become financially unviable and economically irrational, causing a collapse in foreign exchange earnings, job losses and an erosion of competitiveness.
They said domestic policies had made exporting “economically irrational,” forcing industries to close not for lack of orders but because of political impossibilities.
One of the key issues is the sharp rise in gas tariffs for export industries, which have increased by more than 300% in just two to three years, destroying Pakistan’s cost competitiveness. The suspension of gas supplies to captive power plants has crippled production at export units that rely on uninterrupted power, while excess gas availability has led to payment losses for idle power plants, penalizing efficient users and rewarding systemic inefficiency. Foreign export units are forced to turn to an expensive and unreliable grid or invest in CAPEX for new energy options, according to the briefing.
Manufacturers said the government’s carbon tax on energy inputs further threatened Pakistan’s competitiveness by making products more expensive abroad. They also opposed non-refundable 10% import duties on unbleached yarns and fabrics, essential for textile exports.
Exporters have also expressed concern over the overvaluation of the exchange rate, which they say is a result of under-declared imports that artificially strengthen the rupee. They say this makes Pakistani exports more expensive in global markets while keeping domestic imports unrealistically priced.
The Express PK Press Club recently reported a $30 billion gap in trade data over the past five years.
Manufacturers further pointed out that late sales tax refunds, often used to inflate declining revenue figures, are causing a serious liquidity crisis. The resulting working capital shortages forced many exporters to reduce production and miss international shipping deadlines.
A working group on issues related to the Export Development Fund (EDF) has been formed under the chairmanship of leading Pakistani exporter Musadaq Zulqarnain. The 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 goods in Pakistan. It will be chaired by Muhammad Ali Tabba of Lucky Cement. The members include Zulqarnain, Ziad Bashir, International Trade Center 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 issues, with Shahzad Saleem as chairman. Its members are Ziad Bashir, Asif Peer, MP Riazul Haq Jujj and FBR chairman Rashid Langrial.
The fourth task force will deal with railway affairs 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, Additional Secretary Defense Ministry, Gwadar Ports 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 trade hubs. This inefficiency adds seven to 10 days to shipping times, leading to lost orders as buyers switch to faster suppliers. The resulting increase of $200 to $300 per container wipes out already slim profit margins.
Experts estimate annual losses from transshipment of goods that should be handled domestically at $2 billion to $3 billion.
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 agriculture task force will be chaired by Rana Nasim Ahmed, with Prime Minister Ahmed Umair’s agriculture coordinator Ali Mukhtar, Dr Zeelaf Munir, Dr Syed Zahoor Hassan, Chela Ram Kewlani and food security secretary Amir Mohyuddin among its members. However, no farmer representatives were included.
The power 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. The business community has proposed introducing a uniform tariff for all industries across Pakistan, eliminating preferential rates for any sector or region to reduce the high cost of doing business.
He also urged the government to abolish the 10% super tax, noting that it adds to an already heavy tax burden and discourages reinvestment in production capacity, technology upgrades and business expansion.
