Trade Facilitation Board Can Cut Export Costs, Strengthen SMEs Mian Zahid Hussain

Business leader Mian Zahid Hussain has welcomed Prime Minister Shehbaz Sharif’s decision to establish the Trade Facilitation Board, calling it a major step toward improving Pakistan’s trade and industrial performance.

Hussain said coordinated trade reforms could reduce export costs, strengthen small and medium enterprises (SMEs), and help Pakistani businesses connect with global supply chains.

He said the initiative could address non-tariff barriers, logistical bottlenecks and port delays. These issues have increased the cost of doing business and affected the competitiveness of Pakistani products in international markets.

Faster Cargo Clearance Targeted

Hussain praised the targets set by the prime minister during the Board’s first meeting.

The government aims to increase cargo clearance through the Green Channel to 65% by the end of the current fiscal year. It also plans to achieve 30% pre-arrival clearance.

According to Hussain, these measures could reduce cargo processing times and lower demurrage and detention costs.

He also welcomed plans to increase the number of Authorized Economic Operators (AEOs) to more than 50.

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Certified businesses can receive faster customs clearance under the AEO system. Hussain said wider adoption of the system could support higher trade volumes and bring Pakistan closer to international customs practices.

Pakistan Trails Regional Trade Facilitation Scores

Hussain pointed to Pakistan’s performance in the UN 2025 Trade Facilitation Index.

He said Pakistan recorded a score of 74.19%, compared with 93.5% for India, 90.32% for Malaysia, 96.77% for Singapore and 97.85% for the Netherlands.

Pakistan’s score for cross-border paperless trade stood at 55.56%, according to Hussain.

He said the next phase of reform should focus on reliable data exchange between government institutions and international trading partners.

One-Window System and AI Customs Checks

Hussain also welcomed the proposed National Trade Performance Index.

The index will monitor indicators such as cargo dwell time, customs clearance, logistics and vessel clearance. Regular monitoring, he said, could improve institutional performance and transparency.

He further praised the decision to create a working group to prepare a roadmap for auditing non-tariff measures.

The group will also identify unnecessary regulatory requirements. Hussain said excessive red tape and complex regulations have constrained Pakistan’s export potential.

He also supported plans for a One-Window or joint inspection system at ports.

Under such an approach, relevant agencies could coordinate inspections instead of conducting separate checks. Hussain said integrating artificial intelligence into Customs risk management could further improve the process.

The system could allow authorities to focus on high-risk cargo and businesses while clearing routine consignments more efficiently.

SMEs Could Gain Wider Global Access

Hussain said regular mapping of trade barriers could help Pakistani SMEs reach international markets.

He described SMEs as the backbone of the economy. Easier cross-border trade could expand the country’s export base and create hundreds of thousands of jobs, he said.

Hussain also welcomed measures aimed at attracting more international shipping lines to Pakistani ports.

Greater shipping connectivity could reduce transit times and freight costs between Pakistani factories and overseas buyers.

Business Community Backs Reform Agenda

Hussain said the business community supports the prime minister’s trade facilitation vision.

He expressed hope that the government would implement the proposed measures quickly and maintain strict monitoring of progress.

He said effective implementation could help Pakistan achieve its export targets while improving the country’s position in global trade.