Page 57 - CMA Journal (Sep-Oct 2025)

Focus Section

Strategic Policy Recommendations representatives from FBR, NTC, BOI, MoF, and
professional bodies such as ICMA. This council would
from ICMA Pakistan
streamline coordination, eliminate policy overlap,
To ensure the successful implementation of the National and ensure coherent decision-making.
Tariff Policy (NTP) 2025–30 and mitigate emerging 6) Promote “Smart Protectionism” and
structural and fiscal challenges, ICMA Pakistan
Reciprocal Trade Negotiations
recommends the following actionable measures for the
Government of Pakistan: Rather than unilateral liberalization, Pakistan should
adopt smart protectionism — lowering tariffs only in
1) Adopt a Phased and Sector-Sensitive Tariff
sectors where global competitiveness has improved
Rationalization Approach
and securing reciprocal benefits through FTAs/PTAs.
The government should implement tariff reductions This will strengthen Pakistan’s negotiating leverage
gradually and selectively, prioritizing sectors with and protect national interests.
established competitiveness while maintaining 7) Introduce a Transitional Support Package
protective buffers for strategic and emerging
for Vulnerable Industries
industries such as automobiles, defense, electronics,
and IT hardware. This will prevent premature Design a time-bound industrial support program
deindustrialization and sustain local employment. (e.g., 3–5 years) for sectors adversely affected by tariff
cuts. Measures may include tax incentives,
2) Introduce a Cost-Based Tariff Evaluation
technology upgradation grants, and subsidized
Mechanism
credit for productivity enhancement to smoothen
Establish a cost-based tariff review framework using the transition to open competition.
input–output analysis and industry cost structures to 8) Establish a Monitoring and Evaluation
determine realistic tariff levels. ICMA can assist in
Framework for NTP
developing data-driven cost models ensuring tariff
adjustments are based on industrial viability rather Introduce a performance-based monitoring mecha-
than arbitrary benchmarks. nism for the NTP with clear KPIs such as industrial
output growth, export diversification, and fiscal
3) Safeguard Fiscal Stability through Non-Tariff
revenue trends. ICMA can contribute to annual Tariff
Revenue Diversification
Policy Review Reports to assess outcomes and
To offset revenue losses from declining import recommend mid-course corrections.
duties, the government should diversify its non-tariff
revenue base by expanding tax coverage, improving Conclusion
documentation, and incentivizing domestic value
The National Tariff Policy (NTP) 2025–30 represents a
addition. Targeted fiscal instruments such as
pivotal shift toward export-led growth by reducing tariff
productivity-linked tax rebates as it can balance
barriers, eliminating Additional Customs Duties and
competitiveness with fiscal discipline.
Regulatory Duties, and aligning Pakistan’s trade regime
4) Align Tariff Reforms with Industrial Policy with global standards. Targeting a 9.7% average tariff by
Objectives FY2030, it aims to boost competitiveness, attract
investment, and diversify exports beyond textiles into
The NTP should be integrated with the National
sectors such as ICT, engineering, and pharmaceuticals. To
Industrial Policy, ensuring tariff changes directly
ensure effective implementation, ICMA recommends a
support domestic manufacturing, export
phased and sector-sensitive approach, cost-based tariff
diversification, and import substitution. Each tariff
evaluation, fiscal diversification, and strong institutional
revision must be aligned with sectoral growth
coordination. With these measures, the NTP 2025–30 can
roadmaps and linked to measurable industrial
unlock Pakistan’s export potential, strengthen industrial
outcomes.
capacity, and position the economy for sustainable
5) Establish an Integrated Tariff Policy global integration.
Coordination Council
This article is prepared by Maiyra Ahmed, Assistant Director,
Form an institutional Tariff Policy Coordination
R&P, under the guidance of Shahid Anwar, Senior Director R&P.
Council under the Ministry of Commerce, comprising
ICMA’s Chartered Management Accountant, Sep-Oct 2025 55