Iron & steel sector: FBR directed to suspend revised EFS rollout

ISLAMABAD: The first meeting of the committee formed by the prime minister to review the Export Facilitation Scheme (EFS) was held under the chairmanship of the Federal Minister for Planning and Special Initiatives, Ahsan Iqbal, along with Federal Minister for Commerce Jam Kamal Khan.

The meeting was attended by Secretary Commerce, Chief Economist of the Planning Commission, representatives from the Federal Board of Revenue (FBR), and senior officials from relevant ministries. More than 60 representatives from the business community participated via video link in a detailed consultative session with government officials.

The FBR briefed the committee on the EFS, its recent amendments, and areas where misuse has been identified.

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The committee was informed that EFS, introduced in 2021, has seen an increase in licenses from 800 to approximately 2,000. A special drive initiated in May 2024 to curb misuse has led to significant improvements, particularly in the textile industry, which has witnessed notable value addition.

The committee directed the FBR to stop the implementation of the revised EFS for the iron and steel sector until the committee finalises its recommendations.

The Federal Minister for Planning and Special Initiatives, Ahsan Iqbal, emphasised that the prime minister’s directive for export facilitation aims to provide a comprehensive framework to support investors and enhance Pakistan’s export potential.

He reiterated the government’s commitment to creating a business-friendly environment in line with its export strategy, urging the business community to align with evolving global trends. He underscored the importance of achieving the ambitious target of $60 billion in exports, stating that Pakistan’s economic future depends on rapid and sustainable export growth.

Highlighting the government’s URAAN Pakistan agenda, the minister stressed that developing the export sector is not just a policy objective but a fundamental necessity for national economic stability, security, and sovereignty. He called for exponential growth in exports, urging businesses to move beyond incremental increases of $1 billion to $1.5 billion and aim for leaps of $5 billion to $10 billion.

Given the changing global trade landscape, marked by rising tariffs and protectionism, he emphasised the need for Pakistan to strengthen its production and industrial base to remain competitive.

The minister further pointed out that businesses must adopt efficiency-driven models, leveraging innovation and technology to secure a strong position in global markets.

He emphasised that capital investment should be a top priority to enhance Pakistan’s presence in international trade and attract foreign investment.

Copyright Business Recorder, 2025