Written by Shahnawaz Akhter in Taxation, Trade & Industry Karachi, April 6, 2026 – Chairman of the Businessmen Group (BMG), Muhammad Zubair Motiwala, has called on the Federal Board of Revenue (FBR) to immediately restore the zero-rated sales tax for Pakistan’s export sector, warning that ongoing global and regional tensions could severely impact the country’s economy. In a detailed letter addressed to Federal Minister for Finance and Revenue Muhammad Aurangzeb, Motiwala highlighted growing concerns within the business community over the economic fallout of escalating US-Iran tensions. He stated that rising geopolitical instability is already affecting global trade routes, increasing freight and insurance costs, and creating volatility in energy markets. According to him, Pakistan is already facing challenges such as stagnant exports, weakening industrial activity, and declining remittance inflows, all of which are putting pressure on the external sector. In this context, he emphasized the urgent need for policy measures to support exporters. 📊 Key Proposal: Restoration of Zero-Rating Motiwala strongly recommended restoring zero-rating of sales tax on inputs for key export-oriented sectors, including textiles, leather, surgical instruments, carpets, and sports goods. These sectors account for nearly 80–85% of Pakistan’s total exports, making their financial stability critical. He argued that the shift from zero-rating to a refund-based system has created serious liquidity problems for exporters due to delayed refunds and increased borrowing costs. Restoring zero-rating, he said, would improve cash flow, reduce financial pressure, and enhance global competitiveness. 📦 Proposal for Customs Valuation Reform The BMG chairman also suggested a shift in customs valuation from Cost and Freight (CNF) to Ex-Works (EXW) pricing. He explained that CNF includes rising freight and insurance costs, which inflate the tax burden on imports. EXW valuation, he noted, would provide a more transparent and fair system, lowering input costs and improving industrial efficiency. âš¡ Energy Crisis and Industrial Challenges Motiwala expressed concern over Pakistan’s…