NA Committee Recommends Extending Term of Trade Organizations

The National Assembly Standing Committee on Commerce, chaired by Muhammad Javed Hanif, has recommended a one-time amendment to extend the term of trade organizations. An advisor from the Chambers of Commerce briefed the committee on the Trade Organizations Act, which was amended in January. The amendment reduced the term of trade organizations from two years to one year. Chamber representatives expressed concerns about the problems caused by this reduction. The committee was informed that the term was previously extended to two years through an amendment in 2022. The Secretary of Commerce, Jawad Paul, suggested a temporary solution by postponing the implementation of Section 11A, which mandates annual elections. Committee members, including Mirza Ikhtiar Baig and Shakila Luqman, highlighted the significant impact of this issue on chambers across the country and the upcoming FPCCI elections. The committee unanimously recommended a one-time amendment to restore the two-year term. Member FBR Customs Policy briefed the committee on the export facilitation scheme for steel and metal. The scheme was altered through an SRO, leading to concerns about foreign exchange losses due to fraudulent exports. The FBR has increased audits for these exporters to annual and implemented stricter material checks. The FBR official stated that only 8 out of 100 exporters were benefiting legitimately, and duty-free scrap sales were also causing commercial losses. The FBR expressed its intention to exclude the iron and steel sector from the export facilitation scheme. The committee recommended resolving the issues under the Export Facilitation Scheme.