Karachi, February 7, 2024 – The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has issued a vehement opposition to the proposed export ban on minerals and marbles, as approved by the Senate Standing Committee on Commerce.
President of FPCCI, Atif Ikram Sheikh, expressed strong reservations regarding the proposed ban, which encompasses both metallic and non-metallic minerals. He emphasized that this contradicts the vision of the Special Investment Facilitation Council (SIFC), where mines and minerals are identified as one of the five key focus areas.
Atif Ikram Sheikh asserted that Pakistan has the potential to achieve exports worth $10 billion in minerals and marble if a facilitative and incentivizing regime is introduced for the sector. He criticized the Senate Standing Committee on Commerce for not consulting the business community before proposing the ban, highlighting the importance of a consultative process to prevent discontentment with government policies.
The FPCCI president outlined several challenges faced by the mines and minerals sector, including duties and taxes on machinery imports, a devalued Pakistani Rupee, lack of financing from commercial banks, and inconsistency in industrial policies. He called for the immediate withdrawal of the proposed legislation and urged the government to collaborate with commercial banks to provide subsidized financing to the mines and minerals sector.
In response to the proposed restrictions on exports, FPCCI held an emergent press conference at its Karachi Head Office, addressing the concerns surrounding the abrupt limitations on the export of raw minerals and marble. Saquib Fayyaz Magoon, Senior Vice President of FPCCI, emphasized the need for a framework to establish value-adding manufacturing facilities within a specified deadline and advocated for granting the mines and minerals sector the status of an industry to facilitate incentives and policy interventions.
Magoon praised the resilience of mineral exporters who, despite challenging circumstances, continue to export $1.5 to $2.0 billion worth of products. He argued that imposing such legislation at this time would be economically detrimental, worsening the balance of payment and current account deficit.
Zaki Aijaz, Vice President of FPCCI, proposed writing a letter to SIFC, apprising them of the distressing news for the entire mines and minerals sector, and suggested convening a round table to bring all stakeholders together.
Shakeel Munir, former President of the Islamabad Chambers of Commerce & Industry (ICCI), expressed shock at the proposed ban, noting that it comes at a time when SIFC initiatives were geared towards attracting foreign direct investment (FDI), joint ventures, and industrial collaborations in the mines and minerals sector.
Bilal Khan, Vice President of the Mines & Minerals Association of Pakistan, highlighted the sector’s challenges, including expensive electricity and inadequate infrastructure. He also emphasized the sector’s exclusion from the benefits and exemptions of the fifth and sixth schedules.
