KARACHI: The Pakistan Business Forum (PBF) said that Pakistan’s systems — WEBOC and Pakistan Single Window — were not fully synchronised to capturing international trade data, reaffirming concerns about significant under-invoicing of imports to evade taxes.
PBF Vice President, Ahmad Jawad said that the true value and quantity of trade data are not captured in the WEBOC and Pakistan Single Window Customs systems.
It’s a concerning issue because the World Bank funded the Pakistan Single Window — an initiative to launched to integrate Pakistan's trading system; said Jawad.
In this regard its is recommended to negotiating with regional trading partners to obtain value-based data. Even the International Trade Centre (ITC) figures for exports to Pakistan while Pakistani data showed in imports, indicating a sustainable gap of data.
Similarly the PBF has urged the government to create a long-term export strategy that ensures policy continuity.
In a letter addressed to Prime Minister Shehbaz Sharif, the forum highlighted the urgent need for a strategy that supports the country’s economic growth and prosperity.
The letter recommended that the government formulate a long-term plan for boosting exports, with backing from parliament to guarantee policy stability beyond electoral cycles.
This approach would provide businesses, investors, and trade partners with the stability and confidence they need.
Securing parliamentary approval would reflect a unified commitment to export-driven growth and encourage cooperation among government, industry, and stakeholders, according to the PBF.
The PBF’s 12-point export strategy sent to the prime minister included identifying high-potential export sectors, enhancing trade facilitation and infrastructure, improving competitiveness through incentives and support, strengthening trade agreements, and promoting economic diplomacy.
It also calls for accountability for every export incentive and suggests that a national policy for exports, managed and overseen by the prime minister, would give exports the consistent attention they need.
The policy should focus on empowering rather than controlling and should bring stakeholders together to facilitate planning and encourage investment for scaling up and boosting competitiveness, the PBF said.
The PBF also advocates for energy costs associated with exports to be globally competitive. This would help diversify the export basket.
For industries that produce both exported and domestically marketed products, a rebate should be provided on the quantity exported to align energy input costs with global standards.
The president of the PBF also raised concerns over the Trade Dispute Resolution Organization (TDRO) under the commerce ministry, which has yet to assist exporters or importers with international disputes despite its establishment several years ago.
The increasing number of trade disputes due to the liberalization of Pakistan’s foreign trade could harm the economy and damage the country’s reputation if not addressed effectively. A strong trade dispute resolution system is vital for creating a favourable business environment.
Established as part of the Strategic Trade Policy Framework (STPF) 2012-2015, the TDRO was designed to handle private foreign trade disputes through alternative dispute resolution (ADR) methods. However, relevant legislation is still pending, and action is needed, the PBF added.
Copyright Business Recorder, 2024