Guidance sought for independent review of simple, trade-weighted average tariff data
KARACHI: Pakistan Automotive Manufacturers Association (PAMA) has sought the Prime Minister’s guidance for an independent review of simple and trade-weighted average tariff data under the national tariff policy.
In a letter to Haroon Akhtar Khan, Advisor to the PM on Industries and Production, Director General PAMA Razi ur Rahman has requested him to place this matter before the PM and seek his guidance for: an independent technical review of NTP’s simple and trade-weighted average tariff calculations, underlying data and methodology, including reconciliation with the relevant WTO figures; a transparent, like-for-like comparison using consistent reference periods, tariff coverage, weighting methods and clearly stated assumptions; and deferral of further tariff adjustments materially dependent on the disputed baseline until the review is completed and findings considered.
DG PAMA drew Haroon’s attention to the association’s concerns regarding the data and methodology underpinning the National Tariff Policy (NTP), particularly the reported simple and trade-weighted average tariffs for Pakistan and their comparability with the corresponding figures used in international assessments.
“Tariff adjustments based on an inaccurate assessment could inadvertently undermine domestic manufacturing, discourage investment, weaken local supply chains and compromise employment and export potential – objectives contrary to the government’s broader industrialization objectives,” reasoned Razi.
He reiterated that PAMA fully supports the government’s objectives of rationalizing tariffs, improving export competitiveness, and promoting an efficient, competitive economy; however, the success of these reforms depends on the accuracy and comparability of the underlying data.
“We are concerned that Pakistan’s reported average tariffs may not provide a sufficiently robust basis for determining the extent and pace of further tariff rationalization without independent technical verification.
“Simple and trade-weighted average tariffs can differ significantly depending on the methodology, datasets and assumptions employed. Differences in tariff-line coverage, reference periods, import weights, exemptions, preferential rates and the treatment of specific duties can materially affect the resulting figures,” stated DG PAMA.
Accordingly, he added, Pakistan’s reported tariff indicators must be compared with World Trade Organization (WTO) statistics on a strictly like-for-like basis, as without reconciling these elements, headline percentages may lead to misleading conclusions about Pakistan’s actual tariff position.
“Our concern is not with tariff reform itself but with the possibility of far-reaching policy decisions being made on the basis of an inadequately verified baseline. An independent review would establish whether the figures used in the NTP are methodologically sound and internationally comparable, thereby providing a reliable foundation for future decisions.
“This is particularly important for the automotive industry, which supports a substantial domestic vendor base and requires long-term investment, localization and policy predictability,” said Razi.
He added that this would be a prudent safeguard, not a departure from the government’s reform agenda, as it would strengthen the credibility of the NTP, minimize the risk of unintended economic consequences, and ensure future tariff decisions are based on reliable evidence.
“We trust that you will appreciate the importance of resolving this matter before further adjustments are undertaken and will extend your support in bringing it to the Prime Minister’s attention,” concluded DG PAMA.
Copyright Business Recorder, 2026