ISLAMABAD: Pakistan’s Commerce Minister Jam Kamal Khan reaffirmed the government’s dedication to easing the tax burden on exporters during a key meeting with industry representatives from the Sectoral Council for Sports Goods.
The virtual meeting, held at the Ministry of Commerce on Monday, aimed to address the challenges confronting the sports goods industry, with a particular focus on taxation and energy policies, according to a press release.
During the discussion, Jam Kamal Khan committed to revisiting the current policy that limits solar energy production for export-oriented industries to 100KW. This policy review is expected to ease operational constraints and improve the sector’s competitiveness by promoting more sustainable and cost-effective energy solutions.
According to the Pakistan Bureau of Statistics (PBS), the country’s exports increased by 10.54% ($2.921 billion) to reach $30.645 billion in the fiscal year 2023-24, up from $27.724 billion in the previous fiscal year. The Bureau’s monthly trade data also indicated a 12.32% reduction in the trade deficit, which decreased to $24.089 billion in 2023-24 from $27.474 billion in 2022-23.
Imports slightly declined by 0.84%, totaling $54.734 billion in 2023-24, compared to $55.198 billion in the previous year. However, the trade deficit widened by 30.39% year-on-year, reaching $2.390 billion in June 2024, up from $1.833 billion in June 2023.
The commerce minister also agreed to present the industry’s proposals to the National Export Development Board, supporting the retention of the Fixed Tax Regime. Exporters have emphasized that this regime is crucial for protecting them from the complexities and potential issues associated with the Normal Tax Regime, which involves multiple tax departments.
Jam Kamal Khan highlighted the government’s ongoing efforts to create a supportive environment for exporters, especially in the sports goods sector, which plays a vital role in the country’s economy.
