ISLAMABAD: The government is likely to maintain the current export tariffs and tax slabs in the forthcoming budget, according to Abdul Razak Dawood, Advisor to the Prime Minister on Commerce and Investment.
State media reported on Tuesday that Dawood indicated there might be no changes to these financial policies in the upcoming budget for 2020-2021.
Dawood mentioned that the Ministry of Commerce is actively working on revising the tariff structure to facilitate local production and support the ‘Make in Pakistan Policy.’ He emphasized that the objective is to enhance local manufacturing, shifting the focus from imports to domestic production. “The government wants to increase customs duties instead of direct income tax and document non-tax businesses, bringing them into the tax net,” Dawood stated.
The advisor highlighted the transformative impact of the coronavirus pandemic, noting that the business landscape has fundamentally changed. “We are reviewing the recent situation; now the business process will be completely different,” he remarked. Dawood suggested that challenging times often present new opportunities, products, and ways of thinking, underscoring that the current situation is a prime opportunity for Pakistan to advance its ‘Make in Pakistan Policy.’
With many businesses on the brink of closure and numerous workers facing job insecurity, Dawood emphasized the necessity of a policy focused on domestic production. “Under these circumstances, the need of the hour is a policy whereby ‘We do not import, but make products in Pakistan,’” he asserted. This strategy aims to safeguard jobs and support local industries.
Despite the challenges posed by the pandemic, Pakistan has managed to open various sectors, including information technology and services, attracting global interest in Pakistani products. Dawood noted that Pakistan is receiving substantial orders for face masks and sanitizers. Additionally, there has been significant demand for Hydroxychloroquine, with Pakistan exporting raw material to Germany and Turkey and shipping one million tablets to Saudi Arabia.
Dawood’s comments reflect a strategic pivot towards bolstering local industries and reducing reliance on imports. By maintaining current export tariffs and tax slabs, the government aims to provide stability while encouraging domestic production and innovation. The forthcoming budget will likely reflect these priorities, focusing on enhancing local manufacturing capabilities and expanding Pakistan’s footprint in global markets.
