KARACHI: Pakistan’s commerce minister, Jam Kamal Khan, on Monday said his government was working to revamp the country’s trade institutions to make them more efficient, amid Islamabad’s efforts to boost export-led growth in the country.
Pakistan is currently navigating a path to economic recovery under a $7 billion International Monetary Fund (IMF) program, secured in September 2024, and has signed several trade and investment agreements Gulf and Central Asian states as well as other countries.
The organizations the government is restructuring include the Trade Development Authority of Pakistan (TDAP), Export Development Fund, Export Facilitation Scheme and the Directorate General of Trade Organizations, according to Khan.
“In the last six months, TDAP has done a very wonderful job given its current capacity,” he said, addressing a pre-budget seminar. “We are working to enhance its efficiency further.”
Pakistan nearly defaulted in 2023 on the payment of foreign debts and the International Monetary Fund (IMF) rescued it by agreeing to a $3 billion bailout. The South Asian country is now keeping its current account in check primarily through containing imports. The country’s exports rose 10 percent to $19.6 billion in the last seven months till January, while it is keeping tabs on imports that increased by 7 percent to $33 billion, according to Pakistan Bureau of Statistics.
“Despite tough [economic] conditions, our exports have not declined but progressed if not having increased significantly,” Khan noted.
In a statement, the Pakistani commerce ministry said Monday’s seminar provided a platform for stakeholders to discuss economic challenges and the roadmap for tariff rationalization.
“The more this ministry would engage the industry, the more we would know how to address the industry and its issues,” Khan said, acknowledging financial difficulties in the last two years, but appreciated the resilience of the industry.
“We have been partially successful despite many challenges. The industry has survived tough times, and I congratulate all stakeholders for their efforts. Their contributions have been effective in steering the economy toward stability.”
Khan said severe challenges, including inflation that peaked to 38 percent in May 2023, high interest rates, and an uncertain investment climate, had led to an economic slowdown, but credited joint efforts by the government and the private sector for economic stability. Inflation came down to 1.8 percent in January, while the Pakistani central bank has slashed interest rates to 12 percent from an all-time high of 22 percent in June last year.
“If we compare today’s situation with two years ago, it is evident that stability has returned. This achievement is the result of the industry’s contribution alongside government initiatives,” he said.
Commerce Secretary Jawad Paul emphasized the seminar’s importance in shaping economic policy and fostering export-led growth, highlighting the role of tariff rationalization in reducing production costs, boosting competitiveness and attracting foreign investment.
Transparent tariff policies enhance investor confidence and economic integration through trade agreements. The National Tariff Policy (NTP) 2019-24 successfully rationalized 85.75 percent of tariff lines, providing Rs92 billion ($330 million) in relief to businesses, according to the official.
The new NTP 2025-30 aims to further support small-medium enterprises (SMEs), green initiatives and emerging technologies like artificial intelligence (AI) and robotics. The commerce ministry was committed to stakeholder engagement and targeted reforms to ensure sustainable economic growth and global trade integration.
“We have decided to initiate extensive consultations well before the budget,” Paul said. “This is just the first session and within two to three months, we will be in a stronger position to make informed decisions.”
Commerce Minister Khan assured the business community would be involved at every stage to ensure policy alignment.
“Whatever policies we formulate, the business community will be on board. We will strive for a consensus on majority of issues,” he said.
Joint Secretary Muhammad Ashfaq gave a detailed presentation at the seminar on NTP 2025-30, presenting an impact analysis of NTP 2019-24 and contours of the new draft.
Speaking about structural reforms, Khan highlighted the involvement of 17 sectoral councils in policy recommendations, drawing parallels with the National Economic Development Board (NEDB).
“Although our focus remains on increasing exports, we will ensure that local industries remain competitive,” he shared. “We aim to manage tariffs effectively to support domestic businesses while integrating them into the international market.”
Khan reaffirmed the government’s commitment to inclusive and transparent policymaking at the seminar, which was a continuation of a weeklong consultative session between the government and industry representatives.
“The private sector has the potential to drive our economy forward. Over the past six to eight months, we have actively engaged with stakeholders, taken ownership of various business-to-business (B2B) meetings, and strengthened trade mechanisms,” Khan said.
“This pre-budget seminar marks the beginning of a continuous dialogue. We started this process with consensus, and we will conclude it with consensus, ensuring that our economic policies reflect the collective vision of all stakeholders.”