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Business Recorder
6 days ago
- Automotive
- Business Recorder
PAAPAM concerned at proposed National Tariff Policy 2025-30
LAHORE: The Pakistan Association of Auto Parts Manufacturers (PAAPAM) convened an extraordinary general meeting to discuss the government's proposed National Tariff Policy 2025–30. Members expressed grave concerns over the policy's anticipated negative impact on the auto parts manufacturing sector, warning that its implementation could lead to widespread industry closures and severe job losses. The PAAPAM leadership briefed members on a series of meetings held with the Ministry of Industries and Production (MOIP) and the Engineering Development Board (EDB) to highlight the damaging effects of the tariff rationalisation. The members condemned the unilateral acceptance of recommendations from IMF Consultants, reiterating that such a move fails to account for the fundamental role of the auto parts sector in supplying components to Pakistan's local OEMs—supporting the production of cars, tractors, motorcycles, trucks, buses, and defense/railway equipment. Industry stakeholders emphasised that the proposed tariff reduction would shift Pakistan's economy towards imports rather than local industrialization, deepening reliance on foreign products and depleting the country's already limited foreign exchange reserves. They warned that this policy threatens economic stability, as the financial resources needed for industrial growth will instead be drained by excessive imports. Furthermore, the PAAPAM members highlighted that the auto parts industry serves as a critical training ground for human resource development, equipping skilled workers with engineering and industrial expertise. These trained professionals often secure overseas employment, contributing to national remittances and global workforce competitiveness. The closure of domestic industries due to the tariff change would effectively halt this human resource development pipeline, leading to a shortage of skilled labor and restricting opportunities for Pakistan's workforce in international markets. 'We urged the government to adopt a strategic and structured approach to tariff adjustments instead of implementing abrupt changes that destabilize the industry,' said PAAPAM Chairman Usman Aslam Malik. 'The livelihoods of thousands of skilled workers and the long-term sustainability of Pakistan's industrial sector depend on a policy that nurtures local manufacturing rather than exposing it to unfair competition from imports.' Echoing this sentiment, PAAPAM Senior Vice Chairman Shehryar Qadir emphasised the critical need for an inclusive and well-informed policy framework. 'Pakistan's auto parts industry has worked tirelessly to enhance quality, innovation, and efficiency,' he stated. 'A sudden tariff reduction would undo decades of progress and place local manufacturers at an unfair disadvantage against international suppliers. The government must prioritize industrial sustainability through policies that foster growth rather than hinder it.' The PAAPAM remains committed to constructive engagement with policymakers to ensure an industrial framework that supports local manufacturers, preserves jobs, and strengthens Pakistan's economic resilience. The association calls for establishing a balanced and sustainable tariff structure after consultation with industry stakeholders. Copyright Business Recorder, 2025
Business Recorder
24-05-2025
- Business
- Business Recorder
Meeting of Cement & Clinker Export Task Force held
ISLAMABAD: In a significant move to enhance the competitiveness of Pakistan's cement and clinker exports, the Special Assistant to the Prime Minister, Haroon Akhtar Khan, convened an important meeting of the Cement and Clinker Export Task Force, said a press release issued on Friday. The meeting focused on developing a comprehensive strategy to boost cement sector exports and address existing challenges. The government and industry representatives committed to working collaboratively to improve the export competitiveness of the cement sector. Key obstacles discussed included axle load tax, storage issues, congestion at ports, and railway connectivity. Haroon Akhtar Khan emphasised the government's full support for the cement industry to overcome export barriers, stating, 'The government will provide complete backing to the cement industry to facilitate and increase exports.' He called on all related institutions to join hands and work in coordination to find effective solutions to these challenges, highlighting that 'cooperation and harmony among all stakeholders are essential for progress.' To strengthen Pakistan's position in the global cement market, the Special Assistant stressed the need for a united and continuous effort, saying, 'We must work day and night to enhance the global competitiveness of our cement.' Further, Haroon Akhtar Khan directed the formation of sub-committees within the task force and assigned them new responsibilities to accelerate the implementation of export promotion strategies. The Ministry of Industries and Production remains committed to supporting the cement sector as it strives to increase its footprint in international markets and contribute to the country's economic growth. Copyright Business Recorder, 2025
Business Recorder
24-05-2025
- Business
- Business Recorder
SAPM assures PVMA of prompt dues clearance
ISLAMABAD: Pakistan Vanaspati Manufacturers Association (PVMA) raised the challenges facing the ghee manufacturing sector including outstanding dues in a high-level meeting. The high-level meeting was held on Friday between Prime Minister's Special Assistant, Haroon Akhtar Khan and the Pakistan Vanaspati Manufacturers Association (PVMA). Present at the meeting were PVMA Chairman Sheikh Umar Rehan, Secretary of the Ministry of Industries and Production Saif Anjum, and representatives of the ghee industry. The discussions focused in detail on the challenges facing the ghee manufacturing sector. Haroon Akhtar Khan acknowledged the concerns raised by the industry and assured them of the government's support. 'We fully recognise the issues being faced by the ghee sector and are committed to not putting the industry under any additional pressure,' said Haroon Akhtar Khan. He assured that all outstanding dues will be paid promptly. 'The Government of Prime Minister Shehbaz Sharif will ensure the timely disbursement of all pending payments,' he stated. While acknowledging that cash disbursements take time, he emphasised that efforts will be made to expedite the process. Khan also highlighted the government's recent efforts in supporting low-income families, stating, 'Prime Minister Shehbaz Sharif successfully delivered the Ramazan package directly to deserving households.' He reiterated the Ministry of Industries and Production's dedication to resolving the industry's concerns and emphasised, 'The Government and the Ministry of Industries and Production are always available to support and address your issues.' 'Prime Minister Shehbaz Sharif is committed to taking every possible step for the facilitation of the business community,' Haroon Akhtar Khan concluded. Copyright Business Recorder, 2025
Business Recorder
21-05-2025
- Business
- Business Recorder
New tariff policy seen as disaster for manufacturers in Pakistan
ISLAMABAD: The government's new national tariff policy has put domestic industry in serious trouble, with many stakeholders warning that the move could be disastrous for local manufacturing. This concern emerged during a consultative meeting between representatives of local industry and the Ministry of Industries and Production (MoI&P), following a letter issued by the Engineering Development Board (EDB) on May 17, 2025. A copy of the letter is available with Business Recorder. In the letter, the EDB informed industry stakeholders of a significant shift in the country's tariff policy under the National Tariff Policy 2025–30. The letter, widely circulated among stakeholders including the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), all provincial chambers, industrial associations, exporters, and manufacturing groups, was aimed at alerting the sector about the far-reaching implications of the new policy. National Tariff Policy: govt approves phased elimination of import duties According to the letter, the government intends to substantially reduce import duties as part of an export-led growth strategy, with implementation to begin in the federal budget for 2025–26 and continue over five years. The policy formulated under the direct instructions of the Prime Minister includes: (i) elimination of Additional Customs Duty (ACD) over four years starting FY2025–26; (ii) phasing out of Regulatory Duty (RD) over five years; (iii) gradual elimination of the Fifth Schedule of the Customs Act, which covers imports of capital goods and raw materials; (iv) restructuring of the customs tariff into four slabs: zero percent, five percent, 10 percent, and 15 percent; and (v) capping of maximum customs duty at 15 percent. Currently, there are five duty slabs: zero percent, three percent, 11 percent, 16 percent, and 20 percent. The three percent slab will be removed, shifting those tariff lines to either zero percent or five percent. The 11 percent slab will be lowered to 10 percent, and the 16 percent slab to 15 percent, while the 20 percent slab will be gradually eliminated. A follow-up meeting held on May 19, 2025, was attended by a large number of stakeholders via Zoom—so many, in fact, that some were unable to join due to platform limitations. Participants across sectors voiced strong opposition to the proposals. FPCCI representatives stated that they had already submitted comprehensive budget proposals after an extensive consultative process with members. Auto vendors and OEMs noted that the EDB had been consulting them for the past six months as part of the budget-making process. Industry representatives expressed shock that such a drastic policy shift was being introduced at a late stage in the budget cycle—particularly after consensus had already been achieved with the IMF, and a future tariff roadmap was near finalization by the Tariff Policy Board in coordination with the Ministry of Commerce and the Ministry of Industries and Production. 'Stakeholders expressed deep concern, warning that this move could spell disaster for the domestic industry,' said one participant. 'With finished goods facing only a 15 percent maximum tariff, what incentive is left to produce locally? This policy risks are turning Pakistan into a mere trading hub.' Interestingly, the EDB did not explicitly endorse the proposed policy during the meeting. In response to stakeholders' objections, the CEO of EDB repeatedly stated, 'Please send your comments, observations, and suggestions in writing—we will take them up at the relevant forum.' Insiders believe there is a significant divergence of views within the government on tariff reform, and that these disagreements are now playing out in public forums. Copyright Business Recorder, 2025
Business Recorder
21-05-2025
- Business
- Business Recorder
New tariff policy seen as disaster for manufacturers
ISLAMABAD: The government's new national tariff policy has put domestic industry in serious trouble, with many stakeholders warning that the move could be disastrous for local manufacturing. This concern emerged during a consultative meeting between representatives of local industry and the Ministry of Industries and Production (MoI&P), following a letter issued by the Engineering Development Board (EDB) on May 17, 2025. A copy of the letter is available with Business Recorder. In the letter, the EDB informed industry stakeholders of a significant shift in the country's tariff policy under the National Tariff Policy 2025–30. The letter, widely circulated among stakeholders including the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), all provincial chambers, industrial associations, exporters, and manufacturing groups, was aimed at alerting the sector about the far-reaching implications of the new policy. National Tariff Policy: govt approves phased elimination of import duties According to the letter, the government intends to substantially reduce import duties as part of an export-led growth strategy, with implementation to begin in the federal budget for 2025–26 and continue over five years. The policy formulated under the direct instructions of the Prime Minister includes: (i) elimination of Additional Customs Duty (ACD) over four years starting FY2025–26; (ii) phasing out of Regulatory Duty (RD) over five years; (iii) gradual elimination of the Fifth Schedule of the Customs Act, which covers imports of capital goods and raw materials; (iv) restructuring of the customs tariff into four slabs: zero percent, five percent, 10 percent, and 15 percent; and (v) capping of maximum customs duty at 15 percent. Currently, there are five duty slabs: zero percent, three percent, 11 percent, 16 percent, and 20 percent. The three percent slab will be removed, shifting those tariff lines to either zero percent or five percent. The 11 percent slab will be lowered to 10 percent, and the 16 percent slab to 15 percent, while the 20 percent slab will be gradually eliminated. A follow-up meeting held on May 19, 2025, was attended by a large number of stakeholders via Zoom—so many, in fact, that some were unable to join due to platform limitations. Participants across sectors voiced strong opposition to the proposals. FPCCI representatives stated that they had already submitted comprehensive budget proposals after an extensive consultative process with members. Auto vendors and OEMs noted that the EDB had been consulting them for the past six months as part of the budget-making process. Industry representatives expressed shock that such a drastic policy shift was being introduced at a late stage in the budget cycle—particularly after consensus had already been achieved with the IMF, and a future tariff roadmap was near finalization by the Tariff Policy Board in coordination with the Ministry of Commerce and the Ministry of Industries and Production. 'Stakeholders expressed deep concern, warning that this move could spell disaster for the domestic industry,' said one participant. 'With finished goods facing only a 15 percent maximum tariff, what incentive is left to produce locally? This policy risks are turning Pakistan into a mere trading hub.' Interestingly, the EDB did not explicitly endorse the proposed policy during the meeting. In response to stakeholders' objections, the CEO of EDB repeatedly stated, 'Please send your comments, observations, and suggestions in writing—we will take them up at the relevant forum.' Insiders believe there is a significant divergence of views within the government on tariff reform, and that these disagreements are now playing out in public forums. Copyright Business Recorder, 2025
