KARACHI: Pakistan’s commerce minister, Jam Kamal Khan, on Monday said his government was working to revamp the country’s trade institutions to make them more efficient, amid Islamabad’s efforts to boost export-led growth in the country.
Pakistan is currently navigating a path to economic recovery under a $7 billion International Monetary Fund (IMF) program, secured in September 2024, and has signed several trade and investment agreements Gulf and Central Asian states as well as other countries.
The organizations the government is restructuring include the Trade Development Authority of Pakistan (TDAP), Export Development Fund, Export Facilitation Scheme and the Directorate General of Trade Organizations, according to Khan.
“In the last six months, TDAP has done a very wonderful job given its current capacity,” he said, addressing a pre-budget seminar. “We are working to enhance its efficiency further.”
Pakistan nearly defaulted in 2023 on the payment of foreign debts and the International Monetary Fund (IMF) rescued it by agreeing to a $3 billion bailout. The South Asian country is now keeping its current account in check primarily through containing imports. The country’s exports rose 10 percent to $19.6 billion in the last seven months till January, while it is keeping tabs on imports that increased by 7 percent to $33 billion, according to Pakistan Bureau of Statistics.
“Despite tough [economic] conditions, our exports have not declined but progressed if not having increased significantly,” Khan noted.
In a statement, the Pakistani commerce ministry said Monday’s seminar provided a platform for stakeholders to discuss economic challenges and the roadmap for tariff rationalization.
“The more this ministry would engage the industry, the more we would know how to address the industry and its issues,” Khan said, acknowledging financial difficulties in the last two years, but appreciated the resilience of the industry.
“We have been partially successful despite many challenges. The industry has survived tough times, and I congratulate all stakeholders for their efforts. Their contributions have been effective in steering the economy toward stability.”
Khan said severe challenges, including inflation that peaked to 38 percent in May 2023, high interest rates, and an uncertain investment climate, had led to an economic slowdown, but credited joint efforts by the government and the private sector for economic stability. Inflation came down to 1.8 percent in January, while the Pakistani central bank has slashed interest rates to 12 percent from an all-time high of 22 percent in June last year.
“If we compare today’s situation with two years ago, it is evident that stability has returned. This achievement is the result of the industry’s contribution alongside government initiatives,” he said.
Commerce Secretary Jawad Paul emphasized the seminar’s importance in shaping economic policy and fostering export-led growth, highlighting the role of tariff rationalization in reducing production costs, boosting competitiveness and attracting foreign investment.
Transparent tariff policies enhance investor confidence and economic integration through trade agreements. The National Tariff Policy (NTP) 2019-24 successfully rationalized 85.75 percent of tariff lines, providing Rs92 billion ($330 million) in relief to businesses, according to the official.
The new NTP 2025-30 aims to further support small-medium enterprises (SMEs), green initiatives and emerging technologies like artificial intelligence (AI) and robotics. The commerce ministry was committed to stakeholder engagement and targeted reforms to ensure sustainable economic growth and global trade integration.
“We have decided to initiate extensive consultations well before the budget,” Paul said. “This is just the first session and within two to three months, we will be in a stronger position to make informed decisions.”
Commerce Minister Khan assured the business community would be involved at every stage to ensure policy alignment.
“Whatever policies we formulate, the business community will be on board. We will strive for a consensus on majority of issues,” he said.
Joint Secretary Muhammad Ashfaq gave a detailed presentation at the seminar on NTP 2025-30, presenting an impact analysis of NTP 2019-24 and contours of the new draft.
Speaking about structural reforms, Khan highlighted the involvement of 17 sectoral councils in policy recommendations, drawing parallels with the National Economic Development Board (NEDB).
“Although our focus remains on increasing exports, we will ensure that local industries remain competitive,” he shared. “We aim to manage tariffs effectively to support domestic businesses while integrating them into the international market.”
Khan reaffirmed the government’s commitment to inclusive and transparent policymaking at the seminar, which was a continuation of a weeklong consultative session between the government and industry representatives.
“The private sector has the potential to drive our economy forward. Over the past six to eight months, we have actively engaged with stakeholders, taken ownership of various business-to-business (B2B) meetings, and strengthened trade mechanisms,” Khan said.
“This pre-budget seminar marks the beginning of a continuous dialogue. We started this process with consensus, and we will conclude it with consensus, ensuring that our economic policies reflect the collective vision of all stakeholders.”
Pakistan to revamp trade bodies in bid to boost export-led growth, commerce minister says
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Pakistan to revamp trade bodies in bid to boost export-led growth, commerce minister says
- Record inflation, high interest rates and uncertain investment climate led to economic slowdown in Pakistan in last two years
- Commerce Minister Jam Kamal Khan credits joint efforts by the government and the private sector for the economic stability
Middle class families head to Karachi’s Kagzi Bazar for ‘affordable’ shopping on eve of Eid
- 50-year-old market is located in densely populated area of old city of Karachi
- Buyers and sellers both say prices are more affordable than at other markets
KARACHI: Amid Ramadan price hikes and low wage growth across households on the eve of Eid Al-Fitr, there is one safe haven for middle- and working-class shoppers in the Pakistani megacity of Karachi: Kagzi Bazar.
The at least 50-year-old market in the heart of old Karachi, one of the most densely populated areas in the city of over 20 million people, offers a wide range of goods including clothes, jewelry, footwear, bangles, hand bags and other accessories at affordable prices, buyers and sellers told Arab News ahead of the Eid Al-Fitr holiday.
The Pakistan government has announced Eid holidays from Monday, Mar. 31 to Wednesday, Apr. 2.
“It’s comfortable for us in terms of affordability. This market is within our budget, we can’t go to other markets,” Zainab Shafiq, a housewife and mother of two who has been shopping at Kagzi Bazar since she was a child, told Arab News.
“My entire family, including my in-laws as well as my own family, shop here,” she added as she browsed through glittery sandals and bangles at a roadside stall.
Pakistan was beset by inflation above 20 percent since May 2022, registering a high of 38 percent in May 2023, as it navigated reforms under an International Monetary Fund bailout program. While the annual inflation rate slowed to 1.5 percent this February, the lowest in nearly a decade, and the prices of goods are now rising more slowly, the cost of living has not become more affordable in the absence of wage growth for most households.
That is why many middle class and low-income families turn to Kagzi Bazar for Eid shopping over other markets like Tariq Road and Gulf Market in Karachi.
“The prices here are quite reasonable compared to other markets, that’s why we shop here,” 9th grader Mehek Fatima, who was visiting the market with her mother, said.
“Malls have the same variety but the prices here are reasonable compared to them.”
Mohammad Haroon Abdullah, who has been running a garment shop in Kagzi Bazar for the last 25 years, said people visited the market from different parts of Karachi and even from outside the Sindh province because of cheaper rates.
“The entire Balochistan, interior Sindh [provinces] come to shop here,” he said. “The entire Lyari [neighborhood], customers from Keamari, Saddar, New Karachi and so many other localities come to us. Even people who have shifted from this locality come from Soldier Bazar and Garden.”
Indeed, the low prices have been bringing loyal customers to Kagzi Bazar for decades.
“He is more like my brother,” Shenila Abdul Ghaffar told Arab News, pointing toward the owner of a cosmetics shop.
“For almost 28 years, I have been coming to this shop and buying everything from here. My children, daughter-in-law, everyone shops here,” she added.
“At a time when inflation rate is high, it’s easier for us to adjust with our budget here.”
Shawwal crescent sighted, Pakistan to mark Eid Al-Fitr tomorrow
- Eid Al-Fitr begins on the first day of the month of Shawwal in the Islamic lunar calendar
- It is one of two major Muslim festivals that marks end of holy fasting month of Ramadan
ISLAMABAD: The crescent for the month of Shawwal was sighted in Pakistan on Sunday and consequently, Eid Al-Fitr will be celebrated on Monday, March 31, the Central Ruet-e-Hilal Committee announced.
The three-day Eid Al-Fitr festival starts on the first day of the month of Shawwal in the Islamic lunar calendar. The festival marks the end of the holy fasting month of Ramadan.
The Central Ruet-e-Hilal Committee, the country’s apex moon-sighting body, met in Islamabad under the chairmanship of Maulana Abdul Khabir Azad for the sighting of the Shawwal crescent.
“[We] received testimonies of the sighting of the Shawwal moon from various areas of Pakistan today, which include Lahore, Bahawalpur, Islamabad, Sheikhupura, Kasur and other areas,” Maulana Azad announced at a press conference.
“Hence, it was decided with consensus that the first of Shawwal will be on March 31, Monday.”
Pakistan’s government this week announced a three-day holiday from Mar. 31 till Apr. 2 on account of the Muslim festival of Eid Al-Fitr.
The Shawwal moon was sighted in Saudi Arabia on Saturday, marking the end of the month of Ramadan. Eid Al-Fitr is being celebrated in the Kingdom, United Arab Emirates and other Middle Eastern countries today.
Azerbaijan economy minister to visit Pakistan next week to finalize key investment deals
- Cash-strapped Pakistan is currently navigating a tricky path to recovery under a $7 billion International Monetary Fund bailout program
- The South Asian country has been making efforts to generate revenue through increased trade and investment deals with friendly nations
ISLAMABAD: Azerbaijan Minister of the Economy Mikayil Jabbarov will visit Pakistan next week to finalize key investment agreements between the two countries, the Pakistan prime minister’s office said on Sunday.
The statement came after Pakistan PM Shehbaz Sharif’s telephonic conversation with Azerbaijan President Ilham Aliyev on the occasion of Eid Al-Fitr, in which he conveyed his greetings and warm wishes to the brotherly people of Azerbaijan.
The two leaders reaffirmed their resolve to further strengthen the deep-rooted fraternal ties between the two countries and build upon the Sharif’s visit to Baku last month, according to the Pakistan premier’s office.
“The two leaders agreed that the Minister of Economy of Azerbaijan would visit Islamabad in the first week of April to hold discussions with the Deputy Prime Minister/Foreign Minister and also pay a courtesy call on the Prime Minister,” Sharif’s office said.
“This visit would ensure finalization of the key investment agreements between both sides thus setting the stage for President Ilham Aliyev’s expected visit to Islamabad in the month of April.”
During his visit to Baku in Feb., Sharif had announced the two nations would sign deals in April to boost bilateral investments to $2 billion. Multiple agreements for cooperation in the trade, energy, tourism, education and other sectors were also signed during the visit.
The developments come as cash-strapped Pakistan navigates a tricky path to economic recovery under a $7 billion International Monetary Fund (IMF) program. The South Asian country has been making efforts to generate revenue through increased trade and investment deals with friendly nations and regional and international allies, focusing on export-led growth.
In September last year, Azerbaijan bought JF-17 Block III fighter jets from Pakistan, reportedly in a $1.6bn deal.
During President Aliyev’s visit to Pakistan last year, a joint committee was set up to materialize projects in trade, commerce, information technology, tourism, telecommunication, mineral resources and other sectors. Sharif said at the time the current trade volume of $100 million did not reflect the “true” trade potential between the two countries.
Islamabad denies reports of China deploying its forces in Pakistan to protect its nationals
- Chinese nationals have been in the crosshairs of separatist militants who believe Beijing is helping Pakistan exploit minerals in Balochistan
- Pakistani officials say there is no credibility to these reports and the security of Chinese nationals in Pakistan is still a ‘work in progress’
ISLAMABAD: The Pakistani Foreign Office on Sunday refuted reports about the deployment of Chinese security forces in Pakistan to ensure security of Chinese nationals working in the country, describing them as “totally false.”
Media reports, following talks between Pakistan and China on the security of Chinese nationals this week, suggested that China has for the first time deployed its own security personnel in Pakistan to protect its projects and citizens amid rising terror attacks.
Chinese nationals have been in the crosshairs of separatist militants who believe Beijing is helping Pakistan exploit minerals in the underdeveloped southwestern province of Balochistan, where China has a strategic port and mining interests.
“I completely deny this. No Chinese forces are being deployed in Pakistan,” Foreign Office spokesperson Shafqat Ali Khan told Arab News. “This is totally false and there is no credibility to these reports.”
Thousands of Chinese nationals are working in Pakistan, primarily on roads, infrastructure and development projects associated with the $65 billion China-Pakistan Economic Corridor (CPEC), a part of China’s Belt and Road Initiative (BRI).
“Discussions on the security of Chinese nationals are an ongoing process,” Khan said. “This is our commitment to ensure the security of Chinese personnel in Pakistan and these dialogues between the two countries are part of that arrangement.”
Beijing has been pushing Pakistan to allow its own security staff to provide protection to thousands of Chinese citizens working there, frustrated by a string of attacks on its citizens.
The push came after a bombing at the Karachi airport last October killed two Chinese engineers who were returning there to work at a power plant. In March 2024, five Chinese workers were killed in a suicide bombing in northwest Pakistan.
In October, the Pakistani government approved an additional Rs45 billion ($160 million) budget for the armed forces, primarily to enhance their capacity to protect Chinese commercial interests in Pakistan.
This week, Pakistan’s envoy to Beijing, Ambassador Khalil Hashmi, told reporters that discussions between the two countries on security measures to protect Chinese nationals working in Pakistan are still a “work in progress.”
“It’s a complex security environment,” he said. “We have the capability to resolve, to counter and combat and defeat these terrorist forces.”
Government in northwestern Pakistani province promises investigation into ‘civilian’ deaths in drone attacks
- Security forces carried out drone strikes in Khyber Pakhtunkhwa on Friday, targeting alleged militant hideouts
- Khyber Pakhtunkhwa government to give its stance on issue after inquiry report surfaces, says chief minister
ISLAMABAD: The chief minister of Pakistan’s northwestern Khyber Pakhtunkhwa (KP) on Sunday promised an investigation into the alleged deaths of civilians in a drone attack that took place this week, killing 11 people as per reports.
The KP administration on Saturday confirmed an “anti-terror operation” had been conducted on Friday after an international wire agency reported that drone strikes killed at least 11 people, including women and children.
The strikes targeted what officials described as Tehreek-e-Taliban Pakistan (TTP) hideouts in the Katling area of Mardan district. The action had been taken following a TTP attack on Friday that killed seven soldiers during an army operation elsewhere in the province.
KP government spokesperson Muhammad Ali Saif told Arab News on Saturday that as per information received later, “unarmed people” including women and children had been killed in the attack. The army has not yet commented on the development.
“The sad incident of the martyrdom of civilians during this operation will be investigated from all aspects so that the facts come out,” KP Chief Minister Ali Amin Gandapur was quoted as saying by his office.
Gandapur, whose Pakistan Tehreek-e-Insaf (PTI) is the main opposition party in the country that is in power in KP, noted that high-profile “terrorists” had been killed in the same area during previous operations against militants. He said as per official information, 12 “terrorists” had been killed in the area.
“After the inquiry report surfaces, the provincial government will give its clear stance regarding the incident,” he added.
Omar Ayub Khan, the leader of the opposition in the National Assembly, demanded an impartial inquiry into the incident.
“The inquiry result must be made public immediately and not swept under the carpet as has been done in the past,” Khan wrote on social media platform X.
Local residents placed the bodies of the victims on the road in protest after the attack, a senior police officer told AFP on Saturday. He said the dead were being described by locals as “innocent civilians.”
Shortly after reports of the casualties emerged, the TTP released a statement announcing a three-day ceasefire on the occasion of Eid Al-Fitr.
It added that TTP fighters would refrain from operations on the last day of Ramadan, Eid day, and the day after Eid, but reserved the right to respond in self-defense if attacked.
The TTP, which announced a “spring offensive” earlier this month, has claimed responsibility for around 100 attacks in Khyber Pakhtunkhwa in recent weeks.
Pakistan has seen a surge in militant attacks in KP since November 2022, when its fragile truce with the TTP broke down.
According to an AFP tally, over 190 people — mostly security personnel — have been killed in militant violence in KP and Balochistan since the start of the year.
Last year was the deadliest in nearly a decade, with more than 1,600 fatalities nationwide, nearly half of them security forces, according to the Center for Research and Security Studies.
Islamabad blames the surge in attacks on militants using Afghan territory as a base, particularly the TTP, which Pakistan says enjoys sanctuaries across the border.
The Afghan Taliban-led government in Kabul denies this, and accuses Pakistan in return of harboring Daesh militants.
-With input from AFP
