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Gas export levy review: Finance forms panel with industry

The Finance Ministry has formed a committee with government and industry members to review the gas export levy and its calculation formula, after exporter concerns.

Zaviya Desk

· Updated · 3 min read

Zaviya

The federal government has formed a committee to review the gas export levy, a charge that exporters say adds to their energy costs and weighs on their competitiveness. The Ministry of Finance set up the panel, which includes government and industry representatives, to examine the levy policy and its calculation formula and recommend possible refinements. The step followed a follow-up consultation at the Ministry of Commerce, where leading exporters described the pressure that rising production costs are placing on their businesses.

What the committee will examine

At the follow-up meeting, participants were told that the Finance Ministry had constituted the committee, and the gas levy and its effect on export competitiveness were reviewed in detail. The discussion built on an earlier high-level meeting, which identified energy costs, taxation, financing constraints, regulatory procedures and market access as the main barriers to exports. At that earlier meeting, Petroleum Division officials gave clarifications on how the gas levy mechanism works. The sources do not give the current levy rate, the formula itself, or a deadline for the committee to report, so those details remain unconfirmed.

Wider concerns raised by exporters

The gas levy was one of several issues. Exporters raised the Punjab infrastructure cess, saying its application, collection method and added costs were unclear, and asked for clarity on the legal framework and available exemptions. Other concerns included additional sales tax, refund arrangements for non-traditional exporters, certification charges and documentation amendment fees imposed by the Department of Plant Protection, and business visa restrictions. The Federal Board of Revenue (FBR), the government's tax agency, briefed participants on refund processing and digital invoicing.

Market access was also on the agenda. Federal Commerce Minister Jam Kamal Khan said Pakistan is seeking better preferential access with major partners, including China, South Korea, Türkiye, Japan and Vietnam, and that talks with South Korea are progressing. Tyre exporters to Türkiye were asked to send product details and HS codes, the standard codes customs uses to classify goods.

What happens next

Jam Kamal Khan said the Commerce Ministry would consolidate sector-specific and cross-cutting issues and seek responses from the concerned ministries. Leading exporters were asked to send concise written recommendations that name specific problems, proposed fixes and the government action needed. The minister stressed that even small regulatory costs and procedural delays can add up and affect exporters' competitiveness. The ministry plans to present a consolidated package to the Prime Minister at an anticipated high-level meeting, and a further consultation was announced for October 21, 2026, to review outstanding matters.

Aasan alfaaz mein

Hukumat ne gas export levy ko dobara dekhne ke liye ek committee banayi hai. Finance Ministry ne is mein sarkar aur industry ke numainday shamil kiye hain, jo levy ke formula par ghor karke tajawez degi. Exporters ki pareshani ko suna ja raha hai, lekin abhi tak nayi rate ya faisle ki tareekh nahi batayi gayi. Aam logon ke liye yeh ahem hai, kyunke export karne wali companies ki lagat aur naukriyon par is faisle ka asar ho sakta hai.

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  1. The Ministry of Finance formed a government-industry panel to examine the gas levy policy and calculation formula.

Questions readers ask

FAQ

It is a levy linked to gas costs that exporters say adds to their energy expenses. The sources refer to it as the gas levy, and it was discussed alongside the captive power gas levy. The sources do not give its rate or the full calculation method.

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