Ministry starting new round of tariff rationalisation for industry: Dawood

Islamabad: Covid-hit Prime Minister’s Advisor on Commerce and Investment, Abdul Razak Dawood, said on Friday that the Ministry of Commerce (MoC) was starting a new round of tariff rationalisation for the industry.

“September has come and the MoC is about to start the new round of tariff rationalization for further stimulating industrial growth. The sectors we are going to focus are iron & steel, auto, packaging material, agriculture, footwear and plastic etc,” said Dawood who is in isolation after testing positive for Covid-19.

He has requested business community to send their proposals in this regard to the National Tariff Commission (NTC) so that these can be included in the final package, adding the MoC would continue its policy to consult the stakeholders before taking major decisions.

The government has already rationalized tariff on different sectors in the federal budget 2021-22.

Tarin says tariff rationalisation a pressing need

The main focus in budget was on pharmaceutical, engineering, food processing, fisheries’ etc. However, duties on raw materials of other industries were also reduced.

Secretary Commerce, Sualeh Ahmed Faruqui at a meeting of Senate Committee on Commerce stated that increase in exports was the main reason for the rationalization in duties of raw materials.

However, the trade gap in August 2021 was alarming as it crossed $6 billion, which has sent a negative signal to the stock market. The market players fear that if the current trend in imports continues, current account deficit will further aggravate in days to come.

Copyright Business Recorder, 2021