PM Shehbaz Launches Trade Facilitation Board to Cut Trade Bottlenecks

ISLAMABAD: Prime Minister Shehbaz Sharif has approved the establishment of a Trade Facilitation Board aimed at removing non-tariff barriers, improving cross-border commerce and making Pakistan's trade system more efficient. The prime minister will personally chair the new body, placing the initiative under direct federal oversight as the government seeks to improve the country's trade competitiveness and supply-chain performance.

The decision was taken during a high-level meeting on trade facilitation held in Islamabad on Thursday. The proposed board will be responsible for taking decisions on non-tariff issues affecting cross-border trade and for identifying obstacles that slow the movement of goods through Pakistan's trading system. It will also develop a broader roadmap for increasing trade and strengthening coordination among institutions involved in imports and exports.

The government plans to develop a Trade Facilitation Index as part of the new framework, along with a mechanism for monitoring progress. The initiative is intended to create measurable benchmarks for assessing improvements in procedures, logistics and regulatory coordination rather than relying solely on individual reforms implemented by separate departments.

Port performance will be a major focus of the programme. Shehbaz directed officials to begin work on an emergency basis to expand the operational capacity of Pakistan's ports and ordered the formation of specialised working groups. These groups will examine port capacity, coordination between government agencies, regulatory compliance and measures designed to reduce delays before and after cargo reaches Pakistani terminals.

Pre-arrival clearance is another area identified for expansion. Authorities are seeking to increase the use of systems that allow importers to submit goods declarations before vessels arrive, potentially reducing the time cargo remains at ports. Officials told the meeting that use of this facility has been increasing and that recent reductions in port charges have contributed to better utilisation of existing port infrastructure.

The prime minister also directed authorities to simplify transportation, clearance and related procedures for importers and exporters. The government wants businesses to face fewer administrative hurdles when moving goods through ports, while improving the predictability and speed of customs and logistics processes. Small and medium-sized enterprises are expected to receive particular attention as officials work to increase their participation in international trade.

The move comes as Pakistan attempts to strengthen its position as a regional trade and logistics hub while improving export competitiveness. Faster cargo handling, more efficient ports and fewer procedural bottlenecks could help businesses lower transaction costs and improve delivery times, although the effectiveness of the initiative will depend on coordination among customs, port authorities, regulators and other government departments.

Senior federal ministers responsible for commerce, finance, economic affairs, maritime affairs, food security, industry and railways attended the meeting along with other government officials. The next stage will involve establishing the board's formal structure, activating the working groups and translating the prime minister's directives into specific reforms. Businesses will be watching closely for measurable improvements in clearance times, port capacity, regulatory procedures and the overall cost of cross-border trade.