Page 42 - CMA Journal (Sep-Oct 2025)

Focus Section

There are also difficulties with the
political economy aspect. Sectors
that are historically protected,
especially those sectors which have
enjoyed high tariff walls, are bound
to oppose reforms. Hence, the NTP’s
accomplishment might be deter-
mined by the government’s ability
to control rent-seeking behaviour,
enforce better commitments, and
hold consistency in implementa-
tion despite political constraints.
Exposing domestic industries to
international competition may be
destructive to firms that have not
yet achieved cost efficiency or
technological preparedness. The
gradual nature of the schedule set by the policy and the
maximum limits that the tariffs can take may indicate Key references & sources
some understanding of these risks. However, there is
bound to be a need to monitor it so that liberalisation can 1. Zeshan, M. (2025). Balancing Trade and Competition in Pakistan. The
Pakistan Development Review, 64(1), 25-52.
occur at a rate that prepares the industry.
2 Mahar, A. D., & Chandio, R. A. (2025). Import Substitution and
Lastly, the success of the policy should be measurable Economic Resilience: A Policy-Based Assessment of Pakistan’s Trade
using strong metrics. These are the rates of export (1980–2023). Pakistan Social Sciences Review, 9(3), 351-361.
growth, imports, the level of tariffs in various sectors, 3. Cherif, R., & Hasanov, F. (2024). The pitfalls of protectionism: Import
productivity changes, their impact on employment, and substitution vs. export-oriented industrial policy. Journal of Industry,
the aggregate performance of the balance of payments. Competition and Trade, 24(1), 14.
A meaningful test should also include the counterfactual 4. Khoso, F. H., Baseer, A., Afzal, I., ur Rehman, S., & Kaskar, F. U. (2025).
test of how the outcomes under the NTP will be Impact of Tariffs on Trade: Analysing the Effects of Tariffs on
compared with those under the persistence of International Trade and Economic Growth. Research Journal for
Social Affairs, 3(3), 367-371.
protectionism or a more vigorous liberalisation path.
Simply put, the true test of the NTP is policy design, 5. Salman, A., & Chaudhry, S. A. (2025, March). Tariff rationalisation in
Pakistan. OGDCL–IPRI Chair on Economic Security. Islamabad Policy
discipline in implementation, support for reforms, and
Research Institute (IPRI). https://ipripak.org/wp-content/uploads/
time-based, evidence-based evaluation. 2025/03/Policy-Paper-on-Tariff-Rationalization-in-Pakistan-13-02-2
025.pdf
Conclusion
6. National Tariff Commission. (n.d.). Tariff Policy Center. Retrieved [Date
The correct balance is not static but a dynamic process. The you accessed it], from https://www.ntc.gov.pk/tariff-policy-center/
middle ground between dogmatic import substitution 7. WTO. Tariff Profile, Pakistan. 2025. https://www.wto.org/
and naively unconditional liberalisation is the way forward english/res_e/booksp_e/world_tariff_profiles25_e.pdf
for Pakistan. The appropriate strategy combines time- 8. Ministry of Commerce, National Tariff Policy 2025–30 (Government of
bound conditional support with a clear and convincing Pakistan). commerce.gov.pk https://www.commerce.gov.pk/wp
content/uploads/2025/07/National-Tariff-Policy-2025-30.pdf
promise of competition.
9. Pakistan Today Profit, (2025) https://profit.pakistantoday.com.pk/
Documents indicate that the government understands 2025/07/15/pakistan-launches-national-tariff-policy-2025-30-to-rat
this balance; it can only be achieved by adhering to ionalize-tariffs-and-boost-export-growth/
disciplined fiscal design, measurable conditionality, and
greater trade facilitation. By aligning incentives, About the Author: Dr. Azeema Begum holds a PhD in
Economics and has authored over 23 published articles and
eliminating unwarranted dispersion of tariffs, and
presented more than 15 research papers at international and
investing in public goods on which exports depend (such
national conferences. With eight years of diverse research
as skills, standards, and ports), the firms of Pakistan will experience across multiple organizations, she currently serves as
be better positioned to convert protection into Assistant Manager, Research and Publication, at Saviours.
competitiveness, ensuring that jobs created today will be
competitive tomorrow.

40 ICMA’s Chartered Management Accountant, Sep-Oct 2025