The Senate Standing Committee on Commerce, chaired by Senator Anusha Rahman on Tuesday, held a detailed briefing on Pakistan’s missing commercial presence in China, last fiscal year’s trade performance, export growth, foreign direct investment, special economic zones and rising business costs.

The meeting was attended by Commerce Minister Jam Kamal Khan, the Secretary Commerce, the Chairman of the Trade Development Authority of Pakistan (TDAP), and other relevant officials.

A special briefing was presented on the establishment of a Pakistan Chamber of Commerce office in China. The secretary commerce informed the committee that a foreign chamber in China can be set up either as a joint chamber or as a branch. However, no Pakistani joint chamber is currently registered in China, nor is any Pakistani trade representative organisation registered there.

Officials stated that, legally, a joint chamber of commerce can be established in China, and Pakistan can also set up a representative foreign chamber. A joint chamber requires at least 50 members each from Pakistan and China, along with a minimum operational fund of 100,000 Chinese yuan. According to the Secretary commerce, an application for establishing a joint chamber in China would be submitted by the Pakistani ambassador. Pakistan’s private sector can set up a chamber in Beijing or Shanghai, provided Chinese laws and conditions are met.

Rehman questioned why a Pakistani chamber or trade representative office has not yet been established in China. In response, the Secretary Commerce said that trade organisations themselves would be better placed to answer this.

Rehman emphasised that a joint chamber is essential for promoting bilateral trade with China. She noted that while many Pakistanis are doing business in China, no chamber or representative office has been set up, which creates difficulties in follow-ups for Pakistani companies.

She added that various Chinese chambers operate in Pakistan, and Chinese nationals are also engaged in business here individually in large numbers. Given China’s size, she stressed the need to examine how the business credentials of individuals entering Pakistan are verified. She reiterated that Pakistan’s business community should have its own chamber in China to further strengthen trade and business ties between the two countries.

The secretary commerce said the Ministry of Commerce would provide full support to any chamber interested in establishing a joint chamber or representative office in China, though the requirements for the two differ. He added that input should also be sought from the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and other relevant chambers.

On exports, the Chairman of TDAP briefed the committee on last fiscal year’s trade performance. The TDAP chief executive said that while the authority is often blamed for stagnant exports, export performance depends on multiple factors beyond TDAP, including production costs, electricity prices and financing costs.

Senator Aamir Waliuddin Chishti asked what steps TDAP is taking to increase exports, noting that Pakistan has rarely attracted more than $2 billion in foreign direct investment, which also hampers export growth. He said government policies play a key role in attracting investment.

Khan informed the committee that numerous recommendations are submitted to the government for policy improvements. He said the prime minister has been advised to work on reciprocal incentives to boost exports. According to the minister, the Ministry of Commerce is working on new proposals to improve global marketing and increase exports, adding that maintaining high product quality and competitive pricing is essential.

Regarding special economic zones, Rehman asked about the challenges they face. Khan said there is ample space in these zones, but the main issues are electricity, taxation and financing. He added that the International Monetary Fund (IMF) programme has constrained the government, while energy costs, taxes and financing remain major challenges for businesses.

The committee emphasised the need for practical steps to increase exports, promote foreign investment, reduce the cost of doing business, and improve access for Pakistani products in global markets, including China. It also stressed the importance of advancing the establishment of a joint chamber or representative office in China to provide Pakistani companies with an effective platform for business linkages, marketing and trade follow-up.