Pakistan’s government reduced tariffs by Rs. 160 billion during the last fiscal year, with the measures contributing an additional $1.27 billion in exports, the National Assembly Standing Committee on Commerce was informed.
The tariff reductions were introduced under the National Tariff Policy to support exporters, reduce business costs and improve the competitiveness of Pakistani products in international markets.
The Commerce Secretary told the committee that the government has provided another Rs. 120 billion in tariff relief during the current fiscal year as part of its efforts to further support export-oriented businesses.
Impact of New Tariff Cuts
Members of the committee questioned whether the latest tariff reductions would translate into higher exports.
The Commerce Secretary said the impact of the measures would be assessed at the end of the financial year, when their effect on export performance can be evaluated.
The government has also taken other measures to support exporters, including establishing the EXIM Bank and abolishing taxes on exports.
Private Sector Representation Increased
The committee was also informed that private-sector representation on the Export Development Fund Board has been increased.
Government representatives now account for six of the board’s 23 members, giving the private sector a greater role in matters related to export development.
The committee also reviewed a proposal to establish new chambers of commerce in Karachi.
Farooq Sattar suggested that the proposed chambers could be established on a district basis, potentially resulting in several new chambers across the city.
Committee Chairman Javed Hanif said the proposal was new. However, a representative of the Law Ministry explained that a new private member’s bill could not be considered until an earlier draft had either been approved or rejected.
The committee decided to seek legal opinions from the Commerce and Law ministries before proceeding further with the proposal.
The latest tariff relief measures reflect the government’s efforts to reduce costs for businesses and strengthen Pakistan’s export sector, while their full impact on exports will be assessed at the end of the current financial year.
