Secretary of the National Tariff Commission (NTC), Khizar Hayat, said that the gradual reduction in customs duties under the National Tariff Policy will allow industry sufficient time to adjust.
Speaking at the Lahore Chamber of Commerce and Industry (LCCI) on Thursday, he stated that all legal protection mechanisms, such as anti-dumping, countervailing, and safeguard measures, are available to protect local manufacturers.
Khizar Hayat gave a detailed overview of the National Tariff Policy 2025–30, stating that its objectives include simplifying tariffs, boosting exports, improving competitiveness, and creating employment opportunities. He explained that customs duties, additional customs duties, and regulatory duties are being gradually reduced or eliminated.
The Secretary said that the purpose of eliminating additional and regulatory duties is not to encourage imports, but to remove distortions in the value chain, tariff anomalies, and unnecessary concessions. He added that the Tariff Policy Board, Ministry of Commerce, and the National Tariff Commission jointly review the policy’s impact every year, and immediate corrective measures will be taken wherever unexpected negative effects on local industry are observed.
LCCI President Faheem Rehman Saigol appreciated the NTC for protecting the local industry from dumping and unfair subsidies. He welcomed the National Tariff Policy, saying its careful implementation could prove a game changer for Pakistan’s industry. He pointed out that the lack of a clear distinction between raw materials, semi-finished goods, and finished goods creates confusion in tariff structures and leads to unfair competition. The presence of intermediate products further complicates the issue.
He said that although the government aims to promote export-led growth, customs duties on raw materials are holding back industrial development and export targets. He emphasised that tariff policy must evolve as local industry develops. Giving the example of the plastic and packaging sector, he said that the industry now needs a more specific and differentiated tariff treatment.
He proposed zero per cent customs duty on raw materials that are not available locally to reduce production costs and improve competitiveness. He also suggested that customs duties on finished goods should not be reduced for at least the next two years so that the local industry gets sufficient time to compete. A clear tariff gap between raw materials and finished goods is essential.
He also proposed time-bound tariff protection for raw materials produced locally to encourage value addition and domestic investment, while ensuring compliance with IMF agreements and free-market principles. He said that a cascading tariff structure is essential for localisation and investment, and premature tariff cuts would increase imports and put additional pressure on foreign exchange reserves.
Mian Anjum Nisar said that past Free Trade and Preferential Trade Agreements failed to adequately protect the domestic industry, which is why local manufacturers are now under severe pressure. He stated that due to high electricity, gas, and financing costs, Pakistan’s cost of production is much higher than that of other regional countries, and in such circumstances, further tariff liberalisation would be unbearable.
