New policy to review 7,000 tariff lines for enhancing exports, investment: Razak Dawood

New policy to review 7,000 tariff lines for enhancing exports, investment: Razak Dawood

KARACHI – Abdul Razak Dawood, the Adviser to the Prime Minister on Commerce and Textile, announced on Saturday that the Pakistani government is set to review 7,000 customs tariff lines as part of a comprehensive new national tariff policy.

The primary objective of this policy is to stimulate investment within the country, fostering economic growth and enhancing Pakistan’s position in the global market.

Speaking at an event hosted by International Steel Limited, Dawood revealed that the formulation of the national tariff policy would commence shortly after the anticipated approval of a reform package within the next 6-7 days. The adviser emphasized that this new policy, spanning a duration of three to four years, would prioritize the facilitation of industries, ultimately leading to an increase in exports and domestic investment.

Addressing the recent Finance Supplementary (Second Amendment) Bill, 2019, Dawood underscored a departure from the traditional approach to budget-making. He stated, “Unlike this tradition, the present government focused on the core issues of the economy.” The latest reform package concentrates on approximately 15 sectors, with the objective of resolving key economic challenges. Dawood expressed confidence that the package would receive approval within the coming week.

Dispelling any misconceptions about the reform package, the adviser clarified that its primary aim is not revenue generation but rather an investment in the national economy, estimating a cost of around Rs7 billion.

Dawood also asserted that the government is committed to curbing unnecessary and luxury imports to safeguard foreign exchange reserves. He highlighted the importance of a prudent import policy, aligning with the government’s overarching strategy to bolster exports and strengthen the national economy.

Under the current government’s policies, Dawood noted a positive trend in the trade balance, with increasing export figures and a simultaneous easing of imports. He attributed these developments to the strategic initiatives and policies implemented by the present administration.

The announcement of the new national tariff policy reflects a broader commitment by the Pakistani government to create an investor-friendly environment and enhance the competitiveness of local industries. As the country embarks on this ambitious endeavor, stakeholders are keenly watching for the potential economic impact and the resulting transformation in Pakistan’s trade dynamics. The comprehensive review of customs tariff lines and the upcoming policy reforms signal a proactive approach aimed at shaping a robust economic future for the nation.