Pakistan is considering the option of reducing the customs and regulatory duties on import of over 500 raw materials used by export-oriented industries in the upcoming budget in an effort to enhance exports. As per a commerce ministry statement, “While a comprehensive tariff policy for industrial expansion including the medium and long-term measures is being developed, in the short term the immediate rationalisation of tariff is being considered on 515 tariff lines.” It also asked for feedback on the proposed tariff structure from all concerned stakeholders by March 28.

The commerce ministry is working on the formulation of a five-year strategic trade policy framework 2018-23 in consultation with all stakeholders. “One of the key enablers identified for increasing the competitiveness of the export sector is the rationalisation of tariffs on critical inputs of the export-oriented industry,” the statement added.

Mohammad Ashraf, DG, Ministry of Commerce said the government reduced duties on some imported raw materials used by export-oriented industry in the budget for the current fiscal, but the proposal to rationalise tariffs was made for almost all the critical inputs. It took three months for us to devise a list of the critical inputs.

The commerce ministry and the National Tariff Commission attempted to identify inputs/raw materials of the export-oriented products and the tariff structure. “The objective is to rationalise the tariffs in order to make exports more competitive and facilitate participation of local manufacturers, including SMEs, in global and regional value chains,” the statement noted. “The proposed tariff rationalisation will improve the competitiveness of the leading export sectors including textiles, apparel, leather, spices, chemical products, plastics and articles thereof, iron and steel,” the statement further added.

Jawed Bilwani, Chairman of the Pakistan Apparel Forum, representing four textile trade associations said the commerce ministry is expected to hold a meeting by the end of the current month to discuss trade issues and proposed tariffs with businessmen. Textile exports, which accounted for over 60 per cent of the country’s total exports, went up by 7.2 per cent to $8.79 billion in the July-February period