Export facilitation scheme amendments feared to harm apparel sector
The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has opposed the recent amendments to the Export Facilitation Scheme (EFS), warning they will harm the apparel sector, particularly the small and medium enterprises (SMEs).
In a statement, former PRGMEA chairman Ijaz Khokhar urged the Federal Board of Revenue (FBR) to take strict action against the companies that had misused the EFS facility instead of penalising the entire export sector. He emphasised that SME exporters were already struggling and there was a need to delay the amendments, which would prevent further damage.
Top-listed firms paid Pkr1.22tr in taxes last year
In direct tax contributions, Pakistan’s top-listed companies collectively added Rs1.22 trillion in the calendar year 2024 (CY24)—a 2.2 percent year-on-year (YoY) increase—accounting for 23.6 percent of the country’s total direct tax collection. Auto assemblers emerged as the frontrunners, registering a staggering 62 percent surge in tax contributions, followed by fertilisers (19 percent), investment banks (15 percent), commercial banks (12 percent), textiles (10 percent), and cement (9 percent).
Amid these trends, the government revised its tax collection target for FY25 downward to Rs12.35 trillion (from Rs12.97 trillion) following International Monetary Fund (IMF) negotiations.
Shehbaz to unveil relief steps for industries soon
Special Adviser to Prime Minister for Industries and Production Haroon Akhtar Khan has assured the business community that Prime Minister Shehbaz Sharif will soon announce relief measures for the industrial sector, particularly in relation to electricity tariffs.
He also revealed plans for a new bankruptcy law to provide struggling industries with a structured recovery framework, said a statement released by the Ministry of Industries on Monday.
LSM growth contracts by 1.8pc
The growth in major industries remains consistently negative, sinking 1.8 percent during the first seven months of the current fiscal year amid slim chances of an early recovery due to the central bank’s decision to keep interest rates unreasonably high and maintain tight control over imports.
According to the Pakistan Bureau of Statistics, the large-scale manufacturing (LSM) sector recorded negative growth of 1.8 percent during the July–January period of fiscal year 2024–25 compared to the same period last year.
C/A deficit at $12mn in feb
Pakistan’s current account balance (CAB) recorded a deficit of $12 million in February 2025, a significant decrease against a deficit of $399 million in January 2025.
For the July-February FY25 period, the current account posted a surplus of $0.7 billion, a sharp contrast to the $1.7 billion deficit recorded during the same period last year.
This turnaround has largely been driven by strong remittance inflows, $3.1 billion, and a modest rise in exports. However, underlying structural issues remain, as the trade deficit in goods and services remains high at $2.73 billion. Despite a 2.4 percent increase in exports to $2.59 billion, imports surged by 15 percent to $5.02 billion, straining external balances and raising concerns about inflationary pressures and external financing needs.
Federal minister urges port’s role in boosting trade
Federal Minister for Maritime Affairs, Muhammad Junaid Anwar Chaudhry, on Monday held a meeting with Chairman Port Qasim Authority (PQA), Rear Admiral (R) Syed Moazzam Ilyas, to discuss key issues and explore avenues for enhancing the efficiency and capacity of Port Qasim.
The minister emphasised the strategic importance of Port Qasim in boosting maritime trade and industrial growth, said a press release. He directed the PQA to focus on infrastructure upgrades, operational efficiency, and streamlining port procedures to facilitate local and international investors.
Taxpayers unable to file S.T returns
SITE Association of Industry (SAI) President Ahmed Azeem Alvi has expressed serious concern over the issues faced by users of the Federal Board of Revenue’s (FBR) online IRIS system.
The SITE body president highlighted that taxpayers were encountering multiple challenges within the IRIS system, including changes to the harmonised system (HS) code regime, non-acceptance of the units of measurement and difficulties in uploading annexures, among others. As a result, they are unable to file their monthly sales tax returns on time.
He said such issues were widespread, affecting all taxpayers. These include the sudden inclusion of an eight-digit HS code, along with non-acceptance of the units of measurement and other problems. Consequently, the entire supply chain is unable to initiate return filing.
The SITE Association president appealed to PM Sharif to take immediate notice and also requested an extension of at least two weeks in the filing of tax returns.
Pakistan’s huge mineral wealth potential, estimated at $8 trillion
The government is stepping up efforts to exploit Pakistan’s huge mineral wealth potential, estimated at $8 trillion, by engaging both local and foreign investors in different projects.
It has planned to hold a mineral conference next month to showcase the country’s mineral wealth in front of investors.
At a recent briefing to the federal cabinet, it was informed that Pakistan had a mineral wealth of around $8 trillion. Earlier, the potential had been estimated at $6 trillion. The mineral sector employs a workforce of 300,000 and contributes 1 percent to the gross domestic product (GDP).
The cabinet was briefed about the presence of major minerals and the areas where those reserves were in abundance. To extract the resources, numerous projects are underway, primarily in Balochistan.
Community development schemes and skill development initiatives are also being undertaken for the benefit of the people of Balochistan.
Among the mineral sector projects, Reko Diq copper and gold mining is a key project, which is expected to become operational by 2028. Estimates suggest that it will generate a cash flow of $74 billion.