Pakistan finance minister stresses tariff reform to achieve budgetary targets
The statement came after Aurangzeb chaired a meeting of a steering committee for the implementation of the National Tariff Policy, which aims to create a predictable, transparent and investment-friendly tariff structure by facilitating duty-free access to raw materials, phasing out additional customs and regulatory duties, and supporting nascent and green industries to pave the way for innovation, employment generation and sustained economic growth.
Pakistan has set an export target of $44.9 billion in the budget for this fiscal year that began on July 1, with $35.3 billion for goods and $9.6 billion for services sector. The government has proposed a target of $65.2 billion for goods imports, while it expects the imports of services to reach $14 billion, with the overall import volume significantly higher than export figures.
Speaking at Monday's meeting, the finance minister highlighted that the steering committee was continuously monitoring progress of the tariff policy implementation, state of the country's foreign exchange reserves, and guiding the transition of domestic industry, according to the finance ministry.
'The National Tariff Policy represents a five-year roadmap toward liberalizing trade, fostering export-led growth, and enhancing industrial competitiveness,' he was quoted as saying by the ministry.
During the meeting, the National Tariff Commission (NTC) outlined its pivotal role in safeguarding domestic industry through rational tariff structuring and trade remedy actions against unfair trade practices, including dumping, subsidized imports and harmful import surges.
The commission apprised the participants of its efforts to bolster institutional capacity, including organizational reforms, targeted technical training, automation of internal processes, establishment of a dedicated facilitation center for exporters, and initiatives to enhance legal and analytical capabilities to strengthen service delivery.
The finance minister urged the commission to ensure a level playing field for local producers, with the participants resolving to fully implement the National Tariff Policy to reinforce Pakistan's trade competitiveness and industrial development.
Pakistan, currently bolstered by a $7 billion International Monetary Fund (IMF) program, unveiled the tariff policy last month to enable local industries to 'scale, compete globally and shift toward higher value-added exports.' Key sectors expected to benefit include textiles, engineering, pharmaceuticals and information technology, with the policy designed to lower production costs and attract businesses.
Separately, Khurram Schehzad, an adviser to the finance minister, said the government had retired Rs500 billion ($1.7 billion) loan to the central bank early, with the overall early paydowns reaching Rs1.5 trillion.
'Early debt retirement while converting shorter-tenure with longer-tenure debt, significantly reduces concentration risk, lowers future liabilities, and strengthens the country's macroeconomic foundations by curbing reliance on borrowing,' he said on X.
'This latest achievement builds on an earlier milestone — the successful buyback of PKR 1 trillion in market debt completed by December 2024 — the first such operation in Pakistan's history. Combined, these two strategic actions amount to the early retirement of PKR 1.5 trillion in public debt in FY25, sending a strong signal of economic confidence and reform.'
He said these early repayments and smart refinancing, capitalizing on the significant decline in interest rates with the government's disciplined borrowing, led to a staggering Rs830 billion in interest cost savings in the outgoing fiscal year that ended on June 30.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arab News
9 minutes ago
- Arab News
Pakistani province offers to help build cancer hospital in Afghanistan
ISLAMABAD: The provincial administration of Pakistan's northwestern Khyber Pakhtunkhwa (KP) on Saturday offered assistance to build a cancer hospital in neighboring Afghanistan during a meeting between Chief Minister Ali Amin Gandapur and Afghan envoy to Pakistan, Sardar Ahmad Shakib. KP shares a long and porous border with Afghanistan and maintains strong cultural and linguistic ties with Pashtun populations across the frontier. The province has also experienced a major surge in militant violence in recent months, with Pakistani officials frequently accusing armed groups based in Afghanistan of orchestrating cross-border attacks, a claim the Taliban government in Kabul denies. 'Chief Minister Ali Amin Gandapur held an important meeting with Afghanistan's Ambassador Sardar Ahmad Shakib, during which bilateral relations, mutual cooperation and regional stability were discussed in detail,' the KP administration said in a statement. 'Gandapur offered assistance in establishing a cancer hospital in Afghanistan and assured full support in the agricultural sector [to Kabul] as well,' it added. 'He expressed his commitment that the Khyber Pakhtunkhwa government is ready to play every possible role in the welfare of the Afghan people.' Ties between Pakistan and Afghanistan became strained in 2023 when Islamabad launched a major crackdown on undocumented migrants, most of them Afghans, citing security concerns. While Pakistan's federal administration and military adopted a tough posture toward Kabul, it was widely reported in the local media that the KP government wanted diplomatic engagement with Afghan Taliban, signaling an interest in negotiated cooperation. The two sides have recently sought to reset relations and agreed to appoint ambassadors following a China-facilitated tripartite meeting this year. Saturday's discussion also emphasized the deep cultural and ethnic links between the two countries, with both sides agreeing that these bonds should be strengthened through mutual respect and cooperation. The statement said Gandapur plans to send a special delegation to Afghanistan 'to serve as a bridge between the people of Pakistan and Afghanistan and to promote trust and harmony.' Ambassador Shakib expressed appreciation for the KP government's support for Afghan refugees and reaffirmed his commitment to enhancing bilateral ties through peaceful and people-centric initiatives.
Arab News
3 hours ago
- Arab News
Pakistan's climate minister orders action over black bear killing in northern region
ISLAMABAD: Federal Minister for Climate Change Dr. Musadik Malik on Saturday ordered strict action against a group of people who killed a black bear in the northern region of Gilgit-Baltistan, according to an official statement, saying such brutality cannot be overlooked under any circumstances. A video of the incident circulating on social media shows three individuals pushing the unconscious bear down a rocky mountainside. Authorities have already lodged a police complaint and are working with the local community to ensure the accused are brought to justice. 'Such acts of violence against wildlife are utterly unacceptable and will not be allowed to continue under any circumstances,' an official statement quoted Malik as saying. It added he had 'directed the Wildlife Management Boards to take strict and immediate action against those responsible.' The minister also stressed his commitment to protecting Pakistan's wildlife and enforcing conservation laws across all regions, adding that community engagement was critical to prevent such incidents. Acts of animal cruelty are not rare in Pakistan. In June 2024, a landlord in Sanghar district, Sindh, ordered the brutal amputation of a camel's leg for straying into his fields. Days later, another mutilated camel was found dead in the region with its legs amputated. Animal rights activists have also condemned practices like bear dancing, where the animals are trained by being forced to stand on hot metal plates, and bear baiting, a blood sport in which the chained bear is attacked by dogs for public spectacle. Though officially banned, both practices have been reported in parts of the country over the years.
Arab News
4 hours ago
- Arab News
Pakistan PM defends tough structural reforms, says country can't afford ‘business as usual'
ISLAMABAD: Prime Minister Shehbaz Sharif on Saturday strongly defended his government's structural reform agenda, particularly in tax administration, saying that difficult and often unpopular decisions were necessary to rebuild national institutions, as the country could no longer afford 'business as usual.' Speaking at an orientation session for participants of the Uraan Pakistan youth program, Sharif recalled the fragile economic conditions he inherited after assuming power following last year's general elections. He noted that Pakistan had narrowly avoided a sovereign default in mid-2023, when inflation surged to nearly 38 percent, before securing a critical bailout package from the International Monetary Fund (IMF). The prime minister said his administration took on the 'onerous task' of stabilizing the economy under immense pressure, choosing to pursue long-delayed reforms rather than temporary fixes. 'Pakistan had to undertake these long-overdue, deep structural changes if we had to find our lost place in the comity of nations through hard and untiring efforts,' he said. Sharif pointed to a set of key reforms aligned with IMF recommendations, including the digitization of the Federal Board of Revenue (FBR). He noted the transition from paper-based tax systems to digital and AI-led processes was already bearing fruit. 'Faceless interactions — these terminologies were unknown in FBR,' he said, adding that one previously underperforming sector saw its tax contribution rise from Rs12 billion to over Rs50 billion within a year due to improved enforcement. The prime minister said his administration had prioritized accountability, removing senior FBR officials accused of corruption and resisting political pressure in doing so. 'It's a long and thorny journey,' he continued. 'We are facing bumps on the way and mountain-like impediments. But I can assure you, we will not shy away from discharging our responsibility.' Sharif maintained that merit would remain the cornerstone of his governance model. 'Delivery is the name of the game,' he said. 'Performance is the name of the game.'
