Red tape is as costly as tariffs

A column in The Express Tribune argues that the new Trade Facilitation Board, chaired by the prime minister, is a meaningful move toward making export-led growth central to Pakistan's long-term plan. The board is expected to tackle regulatory obstacles to cross-border trade, streamline supply chains and set up a way to track progress. The writer stresses why this matters: Pakistan is among the least trade-oriented economies, with goods and services trade at roughly 27% of GDP against a global average above 56%.

Two long-standing barriers are singled out, the first being protectionism, which the June 2025 five-year tariff overhaul seeks to address. The writer calls the adoption of that five-year reform programme in June 2025 potentially transformative, though entrenched vested interests pose serious challenges to full implementation. A second obstacle, described as equally significant but far less visible, is the expense of shifting merchandise over frontiers, through regulations, inspections and approvals.

Despite progress through the Pakistan Single Window and port modernisation, container dwell times remain near 10 days, while India and Kenya have cut theirs to two and three days. The writer notes that only under 50% of containers use the Green Channel, and more than 80% of UAE consignments get pre-arrival clearance, against under 20% in Pakistan. The piece urges the board to publish outcome-based KPIs covering dwell time, physical examinations, agency numbers and WTO implementation.