The Advisor to the Prime Minister on Commerce and Investment, Abdul Razak Dawood, said that tariff rationalization is vital for export-led industrialization in Pakistan and discussions would start with the relevant stakeholders from next month to develop a three-year roadmap.
He was chairing a meeting at the Ministry of Commerce, which was attended by Secretary Commerce and Chairperson of National Tariff Commission (NTC).
During the meeting, the advisor appreciated the efforts of Tariff Policy Board (TPB) and Tariff Policy Centre (TPC), National Tariff Commission for successful implementation of National Tariff Policy in Federal Budget 2020-21 through reduction of duties on around 2000 tariff lines, comprising basic raw materials/intermediates goods.
The advisor further emphasized the importance of tariff rationalization for improvement of competitiveness of the domestic industry, including the export sector, through duty-free access to imported raw materials and intermediate goods which will eventually increase employment opportunities in the country by attracting investment in the manufacturing sector.
During the budget making process when we were discussing changes in tariffs, it was decided that, once the budget is over and things have settled down, in the month of August discussions will start with stakeholders to prepare a 3 year roadmap for tariff rationalization. 1/3
— Abdul Razak Dawood (@razak_dawood) July 27, 2020
He underlined that the stakeholder consultation process should lead to a constructive roadmap to develop an export-led ‘Make in Pakistan’ program.
For the increase in consumer welfare, the advisor directed to lessen the distortion in domestic price structure by reducing the burden of excessive protection. He asked to remove tariff anomalies in tariff structure through the analysis of value chains. He further directed Tariff Policy Centre, National Tariff Commission to conduct detailed studies and suggest three years tariff rationalization roadmap initially for Iron & Steel, Plastics, Engineering, Pharmaceuticals, Chemicals, and Textile sectors.
On the direction of the advisor, National Tariff Commission is planning to conduct studies on the above-mentioned sectors to provide three years tariff plan. In order to formulate three years tariff plan, National Tariff Commission will first identify the complete value chains.
It will then identify potential stakeholders, collect data from the primary and secondary sources, visit relevant industries, chambers, and associations for collection and verification of data, conduct public hearings and prepare a three years tariff plan. And finally, the proposed three-year tariff plan will be submitted to the Tariff Policy Board for approval and inclusion in the annual Budget.