Key Takeaways
- Pakistan’s National Tariff Policy 2025-30 aims to reduce tariff slabs and eliminate additional customs duties.
- Competitiveness depends on factors beyond tariffs, including energy, technology, and market access.
- The government must address state-imposed costs alongside tariff reductions to boost industry.
Pakistan’s National Tariff Policy 2025-30 seeks to lower tariffs and reduce additional customs duties, aiming to enhance the country’s industrial competitiveness.
However, tariff reductions alone are insufficient; other factors such as energy, technology, and market access are crucial for industry growth.
The policy emphasizes a holistic approach, combining tariff cuts with measures to reduce the costs imposed by the state on production.
Critics argue that prolonged protection on certain industries, such as polyester staple fibre, has not delivered globally competitive costs or technological upgrades.
The textile industry association, APTMA, claims that protection on polyester staple fibre and its key input, purified terephthalic acid, raises costs for downstream textiles.
The country’s sole PTA plant, commissioned in 1998, is said to lag behind newer plants in China and India, raising questions about the effectiveness of current protection policies.
The government must address the high electricity tariffs and excessive electricity consumption to support industry, according to the article.
While tariff reductions are necessary, they must be accompanied by efforts to improve energy efficiency and reduce state-imposed costs.
The article suggests that protection should be selectively applied to industries with a viable future, such as auto parts, to avoid destroying capabilities with potential export opportunities.
