Latest news with #NationalTariffPolicy2025
Business Recorder
21-05-2025
- Business
- Business Recorder
LCCI opposes proposed changes under National Tariff Policy
LAHORE: President of Lahore Chamber of Commerce and Industry Mian Abuzar Shad has strongly opposed the proposed changes under the draft National Tariff Policy 2025–30 presented by the Engineering Development Board. Terming the measures as 'anti-industry,' the LCCI president warned that the new policy could have serious repercussions for Pakistan's industrial base, trade balance and economic sovereignty. The LCCI president said that while reforming the tariff regime is important, the current proposal is likely to increase Pakistan's reliance on imports, shifting the country further away from a manufacturing-driven economy. He said that by substantially lowering import duties and eliminating Additional Customs Duty (ACD), Regulatory Duty (RD), the government risks transforming Pakistan into an import-dependent economy. Mian Abuzar Shad further warned that lower tariffs will lead to a surge in imports, thereby putting immense pressure on the current account and foreign exchange reserves, which are already under stress. 'Pakistan cannot afford such a liberalisation at the cost of macroeconomic stability,' he emphasized. The LCCI also criticised the proposed tariff spread of 0% to 15% as too narrow to reflect the developmental needs of a diverse industrial landscape. 'Even globally competitive and specialized economies such as China maintain a much wider tariff spread to protect sensitive sectors. This narrow spread will blur the line between manufacturers and importers, discouraging local production,' said the LCCI president. The LCCI president also warned that these changes will result in revenue losses for the government while exacerbating the public debt burden. 'The expected drop in customs revenue will need to be compensated through indirect taxation or further borrowing, both of which will hurt the economy.' Pointing to the already high cost of doing business in Pakistan, the LCCI emphasised that this move will further deter industrial growth. 'Our industries are already burdened by high energy tariffs, inefficient labor markets and a complex tax regime. These tariff reductions could lead to shutdowns and job losses,' the president added. The LCCI urged the government to reconsider this premature rationalisation and engage in meaningful consultation with industry stakeholders to develop a tariff structure that supports both industrialisation and exports. Copyright Business Recorder, 2025
Express Tribune
20-05-2025
- Automotive
- Express Tribune
Auto parts makers decry new tariff policy
Listen to article The Pakistan Association of Auto Parts Manufacturers (PAAPAM) has raised serious concerns over the government's newly announced National Tariff Policy 202530, warning that its implementation could result in the closure of a majority of local auto parts manufacturing firms. The policy, which sets a 15% peak tariff, risks destabilising Pakistan's industrial sector by exposing domestic manufacturers to a flood of low-cost imports. According to a statement, PAAPAM Chairman Usman Aslam Malik stressed that the auto parts industry has long supported industrial development, employing thousands of skilled workers and contributing to economic stability. However, the abrupt tariff rationalisation may cause the loss of up to 500,000 jobs, severely impacting livelihoods and weakening the country's manufacturing base. The narrow 0%-15% tariff spread allows no room for a cascading tariff structurecrucial for balanced growth. Coupled with high energy tariffs, inefficient labour markets, and complex taxation, the new policy may further erode competitiveness. PAAPAM also criticised unfair global comparisons, noting that China provided a 13% export rebate on certain products, while Pakistan's duty drawback rate stands at just 2%. This disparity hampers global competitiveness. Moreover, rising imports due to reduced tariffs may worsen foreign exchange reserves. PAAPAM argues that liberalised trade cannot spur exports unless the domestic market is robust enough to support sustainable expansion. Given these issues, PAAPAM urged the government to retain the existing tariff structure for one year and adopt any changes only after thorough consultation with stakeholders. A gradual, phased approach would help industries adjust while minimising the risks of sudden tariff cuts.
