Latest news with #NationalTariffPolicy2025-30
Express Tribune
20-07-2025
- Business
- Express Tribune
Bourse hits record close near 140k
Listen to article The Pakistan Stock Exchange (PSX) rallied 4,298 points (+3.2% week-on-week) and closed at 138,597, driven by broad-based buying and positive macro developments. The current account recorded a $2.1 billion surplus in FY25, the highest in 22 years, aided by strong remittances. The State Bank of Pakistan's (SBP) foreign currency reserves rose to $14.5 billion, while the Pakistani rupee slipped slightly to 284.87 against the dollar. Gains at the PSX were led by Fauji Fertiliser Company (FFC) and United Bank Limited (UBL) as sentiment improved following Pakistan's engagement with Moody's and the unveiling of a new tariff policy. Sector-specific highlights included a 20% year-on-year (YoY) jump in auto financing and a 2.3% rise in large-scale manufacturing (LSM) output in May. With the market trading at attractive valuations and earnings season underway, investors remain upbeat. On a day-on-day basis, the PSX continued its northbound journey on Monday, with the benchmark KSE-100 index surging 2,203 points to close at an all-time high of 136,502, buoyed by the IMF resident representative's upbeat comments that termed Pakistan's economic recovery "strong so far." However, the market witnessed a day of consolidation on Tuesday, when the index oscillated frequently before closing at 135,940, down 563 points. The consolidation continued on Wednesday as the KSE-100 ended the session at 136,380, up 440 points, after fluctuating in both directions. Bulls returned on Thursday with strength as the bourse surged 2,285 points, driven by robust institutional inflows and investor optimism. Fertiliser stocks led the rally. The PSX ended the week on a volatile note on Friday, with the index briefly crossing the 140,000 mark before slipping to intra-day low of 138,344 (down 322 points). However, it managed to recover and closed almost flat at 138,597, losing just 68 points. Arif Habib Limited (AHL) noted that despite some profit-taking during the week, the market maintained its upward momentum, during which the index climbed from 134,299.8 to 138,597.4. This translated into a strong weekly gain of 4,298 points, or 3.2%. The rally was fueled by broad-based buying across sectors, supported by stabilising macroeconomic indicators. Among the key developments, AHL said, Pakistan's economic team met with Moody's to highlight the improving fundamentals and reaffirm the country's commitment to fiscal reforms. The government also unveiled the National Tariff Policy 2025-30, aimed at rationalising tariffs and enhancing export competitiveness. In sector-specific updates, auto financing increased 20% YoY to Rs277 billion in June 2025, up from Rs231 billion in June 2024. On a month-on-month (MoM) basis, it rose 2%. The LSM index grew 2.3% YoY during May 2025 and surged 7.9% MoM. During 11MFY25, the LSM output decreased 1.2% YoY. Pakistan's current account surplus reached $2.106 billion in FY25, an improvement from the deficit of $2.072 billion during the same period of last year. This marks the highest surplus in 22 years. Meanwhile, the SBP's foreign exchange reserves rose $23 million to $14.5 billion — the highest since March 18, 2022. Pakistani rupee weakened 41 paisa WoW to 284.87 against the dollar, AHL added. JS Global observed that the KSE-100 index extended its bullish run during the outgoing week, gaining 4,298 points, or 3.2% WoW, to close at 138,597. However, average daily turnover declined 20%. The significant surge in the index was primarily driven by FFC (+1,821 points) and UBL (+1,165 points). Sentiment remained positive as the IMF expressed satisfaction with Pakistan's economic progress and structural reform efforts, JS said. Among major news, Pakistan has to repay $23 billion in external debt in the current fiscal year, of which some of the debt is expected to be rolled over by friendly countries. Additionally, the government aims to finalise the privatisation of PIA within two to three months, while Expressions of Interest (EOIs) for Roosevelt Hotel, New York will be invited in August. In the latest Pakistan Investment Bonds (PIBs) auction, Rs342 billion was raised against the target of Rs300 billion, with yields dropping 30-54 basis points across different tenors, JS added in its report.
Express Tribune
19-06-2025
- Business
- Express Tribune
Draft tariff policy for 2025-30 unveiled
Listen to article The Government of Pakistan unveiled the draft National Tariff Policy (NTP) 2025-30 during the National Regulatory Reforms Conference organised by the Board of Investment (BOI). The conference, aimed at advancing regulatory simplification and industrial competitiveness, brought together federal ministers, diplomats and private sector representatives for strategic dialogue on Pakistan's economic direction. Coordinator to the Prime Minister on Commerce Rana Ihsaan Afzal underscored the government's commitment to rationalising Pakistan's tariff regime, simplifying business processes and fostering an export-led growth. "The National Tariff Policy 2025-30 is designed to create a predictable, transparent and investment-friendly tariff structure. By facilitating duty-free access to raw material, phasing out additional customs duties and regulatory duties, and supporting nascent and green industries, this policy paves the way for innovation, employment generation and sustained economic growth," he said. The policy outlines ambitious reform goals, including the phasing out of additional customs duties over four years, elimination of regulatory duties and 5th Schedule within five years, and establishment of a simplified four-slab customs duty structure (0%, 5%, 10% and 15%). It aims to benefit key sectors including textile, engineering, pharmaceutical and IT while encouraging investment and reducing production costs across the board. Rana Afzal highlighted that implementation would begin with reduction in tariffs on around 7,000 tariff lines, largely focused on raw material and intermediate goods, yielding Rs200 billion in benefits to trade and industry.
Express Tribune
21-05-2025
- Business
- Express Tribune
Businessmen oppose tariff rationalisation
Listen to article The Lahore Chamber of Commerce and Industry (LCCI) has strongly opposed proposed changes under the draft National Tariff Policy 2025-30 presented by the Engineering Development Board. Terming the measures anti-industry, LCCI President Mian Abuzar Shad warned that the new policy could have serious repercussions for Pakistan's industrial base, trade balance and economic sovereignty. "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, according to a statement issued on Tuesday. Shad was of the view that following a substantial reduction in import duties and the elimination of additional customs duty and regulatory duty, the government risked turning Pakistan into an import-dependent economy. He cautioned that lower tariffs would spark a surge in imports, thereby putting immense pressure on the current account and foreign exchange reserves, which were already under stress. "Pakistan cannot afford such liberalisation at the cost of macroeconomic stability," he emphasised. The LCCI chief criticised the proposed tariff spread of 0% to 15% as too narrow to reflect the development needs of a diverse industrial landscape. "Even globally competitive and specialised 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," he elaborated. Shad underscored that such changes would cause revenue loss to the government while exacerbating the public debt burden. "The expected drop in customs revenue will need to be compensated through indirect taxes or further borrowing, both of which will hurt the economy." Pointing to the already high cost of doing business, the LCCI president stressed that the move would further impede industrial growth. "Our industries are already burdened by high energy tariffs, inefficient labour markets and a complex tax regime. These tariff cuts could lead to shutdowns and job losses." He urged the government to reconsider the premature rationalisation and engage in meaningful consultation with industry stakeholders to develop a tariff structure that could support both industrialisation and exports.
Business Recorder
20-05-2025
- Business
- Business Recorder
Budget 2025–26 to kick off first phase of National Tariff Policy 2025–30
The first phase of the government reduction plan to lower import duties under the National Tariff Policy 2025-30 will be implemented in the upcoming budget 2025-26 and will be fully implemented in five years, read a circular issued by the Engineering Development Board (EDB). 'The government has decided to substantially lower import duties under the National Tariff Policy 2025-30. The first phase of the reduction plan will be implemented in the budget 2025-26 and will be fully completed in five years,' read the circular, dated 17th May, 2025. It said that tariff slabs will be reduced from the existing five to four under the five-year plan, whereas the maximum slab rate will be set at 15% by reducing it from the current 20% over five years. 'According to the Prime Minister's directions, with a focused strategy of export-led growth, following tariff reforms shall be made an integral part of draft National Tariff Policy 2025- 30: 1. Elimination of additional customs duty (ACD) in 04 years, starting from this budget; 2. Elimination of regulatory duty (RD) in 5 years; 3. Phasing out of the 5th Schedule in 5 years; 4. Four customs duty slabs (0%, 5%, 10%, and 15%); and 5. Maximum customs duty at 15%,' read the document. As per the circular, currently, there are five slabs, i.e. 0%, 3%, 11%, 16% and 20%, and it has been decided to abolish the 3% slab and move tariff lines to either zero or 5%. 'The 11% slab will be lowered to 10%, and the current slab, 16%, will be reduced to 15% in the budget,' it said. Whereas, the slab of 20% rate will be abolished gradually. Meanwhile, the Fifth Schedule of the Customs Act, which deals with imports of capital goods and industrial raw materials, will be abolished in five years. The EDB urged all the stakeholders to examine the plan and give their input on how these changes will affect different industrial sectors, product lines, economic growth, and export performance. Last week, in a move aimed at revitalising Pakistan's struggling economy, Prime Minister Shehbaz Sharif unveiled a sweeping new tariff policy, capping customs duties at 15% and announcing the phase-out of additional and regulatory duties over the next four to five years. The announcement, made during a high-level meeting on the country's National Tariff Policy, chaired by the prime minister. 'This is a turning point,' said Sharif, describing the reforms as a crucial step in driving economic growth through a smarter, more equitable trade policy.
