NA body puts steel sector’s exclusion from export facilitation on hold

ISLAMABAD: National Assembly’s Standing Committee on Commerce Tuesday decided to put the exclusion of the steel sector from the Export Facilitation Scheme (EFS) on hold until the Prime Minister’s committee provides further recommendations.

The NA panel chairman emphasised the importance of ensuring that the concerns of all stakeholders are heard and addressed before a final decision is made

The meeting of the standing committee was held at the Parliament House under the chairmanship of Muhammad Jawed Hanif Khan. The committee discussed the impact of the EFS on the metal and steel sectors.

The scheme allows duty-free imports for export-oriented units but has faced issues related to misuse and discrepancies, particularly in the steel sector. The committee raised concerns over a recent SRO issued by the Federal Board of Revenue (FBR) on February 25, 2025, which sought to exclude the steel sector from the EFS facilities.

The FBR clarified that the exclusion was part of efforts to curb duty evasion and other irregularities within the sector. However, stakeholders stressed the need for further consultations before any final decision was made.

The chairman of the committee expressed concern over more than 1,000 containers stuck at the port due to changes in the scheme, highlighting the immediate need for the resolution of the issue.

The committee proposed that the issue be resolved promptly and that consultations with stakeholders should continue to ensure a balanced and fair outcome. The committee also recommended that copper be exempted, while duty should be applied to iron and steel.

The committee held a detailed briefing on the recent amendments to the Trade Organisation Act, 2013, and the Trade Organisation Rules, 2013. The briefing focused on the changes made to the tenure of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI). Representatives elected in 2024 were initially assigned a two-year tenure; however, due to amendments, this tenure was reduced to one year.

The committee noted that this was a sensitive issue as many chambers were involved. The FPCCI requested an extension of the tenure to align with the general chamber elections scheduled for 2026. The chairman emphasised the importance of honouring the legitimate expectations of the representatives, while the secretary of commerce explained that an exemption provision could temporarily address the issue, ensuring that the tenure of FPCCI representatives was not unfairly curtailed.

The committee engaged in an in-depth discussion on how to resolve the issue of FPCCI’s tenure and whether it should be extended to align with the original two-year period. It was proposed that FPCCI’s tenure be extended by one year one time, through an amendment to the Trade Organisation Act.