The National Assembly Standing Committee on Economic Affairs Division met under the convenorship of Dr. Mirza Ikhtiar Baig at Parliament House, Islamabad on 30 December 2025 to review progress on trade preferences and major infrastructure financing.
Committee members heard that the European Union’s GSP Plus arrangement remains a critical driver for Pakistan’s export recovery, providing zero-duty access on more than 66 percent of EU tariff lines and benefitting textiles, agriculture and leather sectors. The committee noted that Pakistan’s exports to the EU have risen by 92 percent, from USD 4.7 billion in 2014 to USD 9 billion in FY 2024–25, underscoring the practical value of GSP Plus in meeting international conventions on human rights, labour and environment.
Members were briefed on progress made in response to EU feedback, including new legislation and the establishment of commissions to meet GSP Plus commitments. The committee was informed that an EU assessment is planned for mid-2026 and preparations are underway for reapplication under the next GSP scheme starting January 2027.
The National Highway Authority presented detailed estimates for the Lyari Elevated Freight Corridor, placing the total project cost at PKR 99,688.53 million, with construction costs of PKR 88,612.03 million and structures valued at PKR 81,227.54 million. Contingencies and consultancy fees of 3 percent each, together with escalation, bring additional costs totaling PKR 11,076.5 million. The committee was told that a full report from the Korean Exim Bank will be shared with Karachi Port Trust by the end of January 2026, and that the bank’s financing strategy and proposal is estimated at around USD 1 billion.
Given the scale of the Lyari project, the committee recommended closer coordination between Karachi Port Trust and the National Highway Authority, with the Secretary Economic Affairs Division asked to lead a concrete and workable financing strategy. Officials confirmed the proposed Korean Exim Bank loan would carry a 40-year tenure at an interest rate of 1 percent, a financing structure that the committee said could be transformative if managed prudently.
The Chairman of Karachi Port Trust invited committee members to hold the next meeting in Karachi and to undertake an on-site inspection of the Lyari Elevated Freight Corridor project to better assess implementation and financing arrangements.
The Ministry of Finance endorsed the committee’s stance on retiring high-cost debt, reporting that repayments of expensive loans have yielded savings worth billions of rupees in reduced interest payments and contributed to improved fiscal management and a more sustainable public debt profile.
The committee urged the government to pursue policies that lower the policy rate to single digits to ease borrowing costs and support activity, while stressing that monetary and fiscal policy must balance effective inflation control with measures that promote sustainable economic growth and job creation.
The meeting was attended by members including Dr. Mirza Ikhtiar Baig, Shahid Usman, Muhammad Khan Daha, Akhtar Bibi, Huma Chughtai, Syeda Shehla Raza, Muhammad Jawed Hanif Khan, Sadiq Iftikhar and Neelam, as well as the Secretary Economic Affairs Division and officials from the Ministry of Economic Affairs and other concerned departments.
