PM Shehbaz approves TDAP overhaul: eight core functions, new board, 12-month roadmap

Prime Minister Shehbaz Sharif on Friday, 6 November, approved a plan to modernise the Trade Development Authority of Pakistan (TDAP), the body meant to promote exports. Business Recorder reported that the decision came at a high-level meeting in Islamabad reviewing TDAP's performance and proposed institutional reforms.

What the plan changes

The meeting was briefed on TDAP's current performance, structure and operational problems, and on a comparison with trade promotion organisations in other countries, which highlighted the need for integrated services: developing local markets, opening access to global markets, strengthening exporters' capacity and promoting exports. The proposed reforms include:

• limiting TDAP's scope to eight core functions
• restructuring its board and management
• improving its regional network
• introducing digital platforms and artificial intelligence
• setting measurable performance indicators
• an independent third-party evaluation mechanism

A phased 12-month roadmap covering approval, design, implementation and independent assessment was presented. Shehbaz directed that the reforms be completed and implemented by the middle of next year.

Hiring and audit

The prime minister told officials to bring qualified, well-trained professionals into TDAP through a transparent, merit-based process, and said career progression should be linked to performance and achievement of targets. He also ordered a reputable private audit firm to be appointed for the authority's performance and financial audits.

On the wider goal, he stressed expanding access to international markets and called for a comprehensive ecosystem and value chain for agricultural exports. The stated aim is to help local industries, including small and medium enterprises (SMEs), meet export standards.

Why it matters now

The announcement came on the same day as new trade data. Pakistan's goods exports were $2.93 billion in October, up only 2.8% on the year, while imports rose nearly 12% (see our report on the October trade deficit). Exporters have long cited high energy tariffs, taxes and expensive financing as the main obstacles, and none of those is addressed by a change to TDAP's structure alone.

For small exporters, the practical question is what changes in services: the report does not give details of which fees or support schemes will change. If you export or freelance, check your tax position with the freelancer tax calculator.