Page 56 - CMA Journal (Sep-Oct 2025)

Focus Section

Sectoral Impact and Export Diversification under the National Tariff Policy (NTP) 2025–30

Sector Key Policy Impact (Under NTP 2025–30) Expected Outcome on Exports Diversification Opportunities

Textiles & Duty-free import of raw materials Lower production costs, Move beyond cotton-based goods to
Apparel (cotton, polyester, dyes); reduction of improved competitiveness, and technical textiles, sportswear, home
ACDs/RDs on machinery and chemicals higher export volumes textiles, and blended fabrics
Engineering Simplified 4-slab tariff structure (0–15%) Encourages local manufacturing Diversify into precision tools, EV
Goods & Auto and reduced duties on industrial and value addition, improving components, and regional supply
Parts components and equipment export quality chains
Information & Lower tariffs on hardware, components, Strengthens IT hardware exports Expand into AI solutions, fintech
Communication and software; incentives for digital and boosts software-related platforms, and IT-enabled exports
Technology manufacturing services
(ICT)
Agro-Processing Reduced tariffs on food machinery, Enhances export value, product Diversify into processed fruits, halal
& Food Products packaging, and cold-chain quality, and food security foods, organic products, and
infrastructure agribusiness exports
Pharmaceuticals Elimination of para-tariffs on APIs and Lowers production costs and Expand exports to Africa and Central
& Chemicals intermediates; cheaper import of lab improves product Asia; diversify into nutraceuticals and
and testing equipment competitiveness biopharmaceuticals
Renewable Duty-free import of solar panels, wind Promotes clean manufacturing Develop solar module assembly,
Energy & Green components, and green technology and renewable energy exports green appliances, and sustainable
Tech inputs tech exports
Minerals & Rationalized tariffs on mining Boosts domestic refining capacity Move from raw mineral exports to
Metals machinery and processing equipment and value addition processed copper, marble, and rare
earth materials
Leather & Reduced import duties on tanning Improves design capability and Diversify into high-end leather goods,
Footwear chemicals and industrial machinery export competitiveness sports footwear, and eco-friendly
products
Automobile & Comprehensive tariff rationalization Enhances competitiveness, Expand into EV manufacturing,
Auto Parts aligned with Auto Industry consumer welfare, and export regional auto parts exports, and
Development and Export Policy (AIDEP) readiness of local auto technology-driven automotive
2026–31; includes removal of ACDs/RDs, manufacturers production
CD reductions, and review of SROs 655,
656 & 693 (2006); allows import of used
vehicles under environmental standards
Key Challenges in Implementing the National Tariff Policy (NTP) 2025–30
The implementation of Pakistan’s National Tariff Policy (NTP) 2025–30 faces several institutional, structural, and
economic challenges that may hinder its ability to promote sustainable industrial growth, export diversification, and
fiscal stability.
Area Challenges
capacity may lead to the
decline of local manufacturing sectors unable to compete with cheaper imports.
restrict the ability of local firms to benefit from liberalized trade regimes.
Fiscal Dependence and Revenue %—is expected to
Pressure shrink fiscal revenues, reducing the government’s ability to fund industrial, export, and
social development programs.
ng relevant
reforms.

automobiles, defense,

storts the tariff
rm credibility.

Insufficient trade and industrial data constrain evidence-based policymaking and weaken
monitoring of policy outcomes.
External and Global Policy ds, where advanced
Misalignment economies increasingly use tariffs, subsidies, and safeguards to

pose further risks.
1996 and 2005—did
not enhance exports but widened trade deficits and slowed indust

dvantage over Pakistan
in regional and global markets.
54 ICMA’s Chartered Management Accountant, Sep-Oct 2025