PM Shehbaz Approves Trade Facilitation Board to Ease Pakistan’s Cross-Border Trade
ISLAMABAD, PAKISTAN — WEB DESK: Prime Minister Shehbaz Sharif on Thursday approved the establishment of a Trade Facilitation Board aimed at addressing non-tariff obstacles to cross-border commerce, improving Pakistan’s trade supply chain and accelerating reforms at the country’s ports.
The prime minister will personally chair the proposed board, according to an official account of a high-level meeting on trade facilitation held in Islamabad on September 3.
The new body will be responsible for decisions concerning non-tariff issues related to cross-border trade and measures designed to improve the broader trade supply chain. It will also prepare a trade-promotion roadmap, develop a Trade Facilitation Index and formulate a mechanism for monitoring progress.
Ports Placed at Centre of Trade Reform
A major part of the government’s latest initiative focuses on Pakistan’s ports, where delays, logistics costs and regulatory procedures can directly affect importers and exporters.
Shehbaz directed authorities to work on an emergency basis to improve the operational capacity of the country’s ports and ordered the formation of specialised working groups.
The groups will focus on port capacity, coordination among government departments, regulatory compliance, pre-arrival clearance and greater participation by small and medium-sized enterprises, or SMEs, in international trade.
The prime minister also instructed officials to simplify procedures involving the movement and clearance of goods at ports and provide maximum facilitation to importers and exporters.
Government Says Port Charges Have Already Fallen
Officials told the meeting that port charges had been reduced as part of ongoing reforms and said this had resulted in a significant improvement in port utilisation.
The meeting was also informed that the facility allowing traders to submit goods declarations before a vessel arrives was being expanded.
Pre-arrival processing can allow customs and other authorities to begin reviewing cargo documentation before a ship reaches port, potentially reducing clearance times when effectively implemented.
However, the government’s statement did not provide numerical data showing the size of the reduction in port charges, the percentage improvement in port utilisation or the average reduction in cargo-clearance time. Those outcomes should therefore not be quantified without additional official data.
Board to Address Non-Tariff Issues
The Trade Facilitation Board’s mandate is particularly significant because the government’s announcement focuses on non-tariff matters rather than simply changing customs duties.
Non-tariff trade barriers can include regulatory requirements, documentation, customs procedures, licensing processes, technical standards and administrative delays.
Pakistan’s Ministry of Commerce describes trade facilitation and liberalisation, improving export competitiveness and reducing the cost of doing business as central elements of its trade mandate.
The government is separately operating under its National Tariff Policy 2025–30 and tariff structure for fiscal year 2026-27. The new Trade Facilitation Board should therefore not be interpreted as replacing the country’s existing tariff-policy framework.
SMEs to Get Greater Access to International Trade
The inclusion of SMEs is another important element of the plan.
One of the working groups will specifically examine ways to increase participation by small and medium-sized businesses in international commerce.
Smaller businesses can face proportionally higher compliance and logistics costs than larger exporters. Faster clearance, simplified documentation and better coordination among regulatory agencies could therefore lower some barriers to entering foreign markets.
But the government has not yet announced a specific SME export subsidy, financing package, tax concession or numerical export target under the new board.
The announcement concerns an institutional and administrative reform framework rather than a new financial incentive programme.
Trade Facilitation Index Planned
The proposed Trade Facilitation Index is intended to provide a mechanism for assessing progress under the reform programme.
The government has not yet published the index’s methodology, indicators, baseline score or implementation timetable. It is therefore premature to say how agencies, ports or trade procedures will ultimately be ranked.
Similarly, while Shehbaz has approved establishment of the board, the available announcement does not provide its complete membership, secretariat structure, meeting frequency or statutory framework.
These details will be important in determining how the board operates alongside existing institutions responsible for commerce, customs, ports, maritime affairs and investment.
Senior Economic Ministers Attend Meeting
The meeting brought together senior members of the federal government’s economic team.
According to the official account, participants included National Food Security Minister Rana Tanveer Hussain, Commerce Minister Jam Kamal Khan, Economic Affairs Minister Ahad Khan Cheema, Finance and Revenue Minister Muhammad Aurangzeb, Maritime Affairs Minister Junaid Anwar Chaudhry, Adviser to the Prime Minister on Industries Haroon Akhtar, and Minister of State for Finance and Railways Bilal Azhar Kayani, alongside senior government officials.
Their participation reflects the cross-government nature of the proposed reforms, which involve trade policy, taxation and customs, port operations, transport, industry and international commerce.
Approval Marks Start of Institutional Process
The key development is the prime minister’s approval to establish the Trade Facilitation Board.
It should not yet be described as proof that Pakistan’s trade barriers have been removed or that cargo-clearance times and export costs have already fallen as a result of the new body.
The immediate next phase involves establishing the board, developing its roadmap and monitoring framework, forming the specialised working groups and implementing the measures ordered by the prime minister.
If effectively executed, the initiative is intended to create a more coordinated system for handling non-tariff barriers and cross-border trade — but its economic impact will depend on implementation and measurable improvements at ports and regulatory agencies.
