In a major move aimed at boosting both the export sector and domestic industrial production, the Pakistani government has unveiled plans to eliminate or reduce customs duty, additional customs duty, and regulatory duty on 135 tariff lines associated with crucial raw materials.
Finance Minister Asad Umar made the announcement during his speech at the National Assembly while presenting the Finance Supplementary (Second Amendment) Bill 2019 on January 23.
Minister Umar highlighted the importance of addressing tariffs that were negatively impacting the country’s export competitiveness and hindering domestic production. The initiative, a collaborative effort between the Ministry of Finance, the Federal Board of Revenue (FBR), and the Commerce Ministry, involved a comprehensive review of various categories of customs and regulatory duties.
The 135 identified tariff lines primarily pertain to raw materials and industrial inputs, crucial for sectors such as plastic, footwear, tanning, leather, consumer goods, diapers, and chemicals. The government has decided to either eliminate or reduce customs duty, additional customs duty, and regulatory duties on the import of these essential raw materials.
During his announcement, Finance Minister Asad Umar specifically mentioned that customs and regulatory duty on the import of plastic molding compound would either be removed or reduced initially, with proposals outlined in the supplementary finance bill. However, the broader rationalization of customs duty and regulatory duty on the remaining products is set to take effect from March 31, 2019.
The Finance Minister emphasized that these strategic measures aim to encourage local manufacturing and enhance the overall competitiveness of Pakistani exports in the global market. By reducing or eliminating duties on raw materials, the government aims to create a more conducive environment for businesses in sectors heavily reliant on these inputs.
This decision is expected to have a positive impact on various industries, fostering a more business-friendly climate and potentially leading to increased job opportunities. Minister Umar expressed confidence that these steps would not only support local businesses but also strengthen Pakistan’s position in international trade.
The government’s proactive approach towards tariff reforms aligns with its broader economic agenda, emphasizing sustainable growth, industrial development, and job creation. As the nation moves forward, these measures are poised to contribute significantly to the achievement of economic targets and the overall well-being of the Pakistani economy.
