A meeting of the National Assembly Standing Committee on the Economic Affairs Division was held in Committee Room No. 05, Parliament House, Islamabad on 30th December 2025 under the convenorship of Dr. Mirza Ikhtiar Baig. Members reviewed trade preferences, infrastructure financing and fiscal policy measures affecting exports and investment.
The committee heard that GSP Plus continues to play a pivotal role in Pakistan’s export recovery by offering zero-duty access on more than 66 percent of EU tariff lines, supporting key sectors such as textiles, agriculture and leather. Committee members were told Pakistan’s exports to the European Union rose by 92 percent, from USD 4.7 billion in 2014 to USD 9 billion in FY 2024–25, reflecting the importance of the GSP Plus framework for sustainable development and compliance with 27 international conventions.
Officials reported that Pakistan has advanced on several GSP Plus commitments through new legislation and institutional measures and that EU follow-ups have shown progress. An assessment is planned for mid-2026 and preparations are under way to reapply under a renewed GSP scheme starting January 2027, with the committee urging continued compliance and timely documentation to safeguard market access.
The National Highway Authority presented detailed estimates for the Lyari Elevated Freight Corridor, placing the total project cost at PKR 99,688.53 million. Construction costs were listed at PKR 88,612.03 million with structures accounting for PKR 81,227.54 million; additional charges including contingencies and consultancy (each 3 percent) and escalation bring the extra costs to PKR 11,076.5 million. Members were informed that a full report from the Korean Exim Bank will be shared with Karachi Port Trust by the end of January 2026, and that KPT will provide further details on the bank’s strategy and a financing proposal estimated around USD 1 billion.
The committee recommended that Karachi Port Trust and the National Highway Authority coordinate closely and that the Secretary of the Economic Affairs Division lead a consolidated, workable strategy for the Lyari Elevated Freight Corridor. It was noted that the proposed Korean Exim Bank loan carries a 40-year tenure at an interest rate of 1 percent, and the Chairman of KPT extended an invitation to hold the next committee meeting in Karachi coupled with a site visit to the project.
The Ministry of Finance endorsed the committee’s recommendation on retiring high-cost loans, reporting that this approach has generated savings amounting to billions of rupees in reduced interest payments and has strengthened public debt management. The committee also urged the government to pursue a policy path that aims for a single-digit policy rate to ease borrowing costs while stressing that economic policy must balance effective control of inflation with promotion of sustainable growth to foster investment and job creation.
Present at the meeting were MNAs Dr. Mirza Ikhtiar Baig, Shahid Usman, Muhammad Khan Daha, Akhtar Bibi, Huma Chughtai, Syeda Shehla Raza, Muhammad Jawed Hanif Khan, Sadiq Iftikhar and Neelam, alongside the Secretary of the Economic Affairs Division, officials of the Ministry of Economic Affairs and other concerned officers.
