Islamabad, May 8, 2026 – Leading business tycoons and industrial stakeholders on Friday urged the government to pursue balanced tariff rationalization policies to support industrial growth, exports and investment in Pakistan’s manufacturing sector.
The concerns were raised during a meeting between Jam Kamal Khan and representatives of the Pakistan Business Council along with major industrial players.
Industrial Leaders Discuss Tariff Reforms
The meeting included prominent industrial stakeholders, including Taimur Dawood.
Participants discussed industrial competitiveness, tariff rationalization, export sustainability and the challenges facing Pakistan’s manufacturing sector.
According to officials, discussions focused on the impact of tariff reforms, anti-dumping duties and rising production costs affecting the petrochemical, plastics, polyester and SME sectors.
Industry Warns Against Abrupt Duty Reductions
Industrial representatives informed the commerce minister that while trade liberalization and tariff rationalization remain important objectives, sudden across-the-board duty reductions could negatively affect domestic manufacturing and industrial investment.
Business leaders stressed the need to differentiate between genuine industrial exporters and trading activities heavily dependent on imports without significant local value addition.
They also highlighted concerns about the impact of lower tariffs on government revenues and industrial sustainability.
Jam Kamal Khan Supports Sustainable Industrial Growth
Jam Kamal Khan emphasized that Pakistan’s industrial and export ecosystem must support long-term manufacturing growth and sustainable industrialization.
The minister observed that emerging industries require time, infrastructure development, policy stability and capital recovery before becoming globally competitive exporters.
He also stated that policy decisions should remain responsive to changing economic realities and geopolitical developments.
According to the minister, Pakistan’s economic conditions differ from many regional economies due to security concerns, energy costs and law-and-order challenges.
Concerns Raised Over Informal Economy
Participants also discussed the impact of the informal economy and uneven enforcement mechanisms on registered industries.
Industrial stakeholders argued that compliant businesses often face unfair competition from undocumented commercial importers and unregulated sectors operating outside the tax and regulatory system.
Jam Kamal Khan stressed the importance of stronger enforcement measures to ensure fair competition and protect formal industries contributing to the economy.
Petrochemical and Manufacturing Sectors Highlight Challenges
The meeting further addressed issues facing Pakistan’s petrochemical and downstream chemical industries.
Stakeholders pointed to fluctuating global raw material prices, rising production costs and changing international market conditions as major challenges for manufacturers.
Business leaders underlined the strategic importance of petrochemicals, plastics, PVC and value-added manufacturing for Pakistan’s industrial future and export diversification.
Government Assures Continued Consultation
Industrial representatives informed the minister about ongoing and planned investments in Pakistan’s manufacturing sector, including projects involving international partners and foreign investors.
They emphasized that stable industrial policies and supportive tariff structures are necessary to attract further investment and strengthen industrial self-reliance.
Jam Kamal Khan reaffirmed the Ministry of Commerce’s commitment to continued consultations with businesses and industrial stakeholders to formulate practical and sustainable trade policies.