Islamabad, 22nd September 2025: The Standing Committee on Commerce, under the chairmanship of Mr. Muhammad Jawed Hanif Khan, convened at Parliament House to deliberate on pivotal trade agendas, including strategic free trade agreements, key export facilitation measures, Pakistan-China economic ties and the licensing framework for district Chambers.

The National Assembly Standing Committee on Commerce has voiced deep concern over Pakistan’s widening trade deficit with China and underscored the urgent need for value addition, institutional reforms, and stronger accountability mechanisms to enhance the country’s export performance.

 

The Ministry briefed the Committee that Pakistan’s imports from China peaked at USD 20.8 billion in 2020-21, against exports of just USD 3.1 billion, with the latest figures (2024-25) showing a persistent imbalance of USD 17 billion in imports versus USD 2.7 billion in exports. Members noted that Pakistan continues to export raw materials like copper and cotton, which return as high-value products, and urged greater focus on value-added production in textiles, minerals, and meat a sector with an export potential of USD 5 billion. The Ministry of Commerce informed the Committee that fifteen SPS and TBT protocols have been signed under Phase III of the FTA with China, alongside a list of 700 items for concessions, and initiatives such as a Green Channel at Khunjerab are under consideration. The Committee also called for stronger accountability of trade officials abroad and greater use of international platforms to showcase Pakistani products.

 

The Committee also reviewed Pakistan’s Free Trade Agreements with other countries. On the Malaysia-Pakistan Closer Economic Partnership Agreement (MPCEPA), it noted export growth in seafood, maize, and textiles but expressed concern that upcoming floods may disrupt agricultural output and affect trade performance. Reviewing the Pakistan-Sri Lanka Free Trade Agreement (PSFTA), members acknowledged its role in expanding bilateral trade by extending concessions on over 80% of tariff lines. On the South Asian Free Trade Area (SAFTA), the Committee noted tariff reduction commitments but flagged persistent reliance on sensitive lists. Members emphasized that Pakistan’s PTAs and FTAs have delivered suboptimal results due to structural issues, including reliance on low-value exports, outdated agreements, domestic productivity constraints, and high energy costs, as well as technical and non-tariff barriers abroad.

Domestically, the Committee settled a long-standing issue regarding the Karachi Chamber of Commerce and Industry (KCCI), affirming that KCCI will continue as the premier chamber with its name and status intact. The Ministry was directed to move a summary to the Cabinet to formalize KCCI’s position while enabling the establishment of new district chambers without undermining its role.

 

The case of the North Karachi Association of Trade and Industry (NKATI) was also taken up. Members expressed concern over its license lapse in 2019, only raised in 2025, and recommended referring it to the Federal Government for time-limit condonation.

 

The Committee further expressed dissatisfaction with delays over S.R.O 760, warning against contradictory statements that mislead Parliament. It called for the immediate revival of the notification and recommended the establishment of a dedicated regulatory authority for gemstones and jewelry, citing India and Bangladesh as successful models.

 

Reaffirming its commitment, the Committee stressed that addressing structural flaws, enhancing value-added exports, and strengthening institutional support are essential to enable Pakistan’s business community to compete globally and to secure long-term trade sustainability.

 

The meeting was attended by MNAs, Dr. Mirza Ikhtiar Baig, Ms. Tahira Aurangzeb, Mr. Gul Asghar Khan, Mr. Farhan Chishti, Mr. Ramesh Kumar Vankwani, Mr. Asad Alam Niazi, Ms Kiran Haider,and Choudhary Iftikhar Nazir and Senior officers from the Ministry of Commerce, Trade Organization and representatives from KCCI were also present in the meeting.