'NTP built on inflated figures'

Manufacturer Aamir Allawala told a government-sponsored seminar that the National Tariff Policy (NTP) used an inflated figure to justify a 52% cut in protection, according to The Express Tribune. He argued the 18.54% figure piled Pakistan's ACD and RD onto its base duty, whereas rivals were measured on base customs duty alone. Using World Trade Organisation data, he put Pakistan's rate at 10.3%, below the regional average and far under India and Bangladesh.

The commerce ministry said the 18.54% figure reflected Pakistan's overall average tariff, made up of 10.3% customs duty, 3.65% ACD and 4.57% RD. It cited the WTO Tariff Profiles 2024 as placing Pakistan highest in South Asia on that basis, ahead of India at 17% and Bangladesh at 14.1%. Former National Tariff Commission chairperson Dr Rubina Athar, an NTP team member, argued that Pakistan's tariff is defined to include all three duties.

Allawala said the NTP should be reopened and the error corrected, though he declined to judge intentions. He attributed Pakistan's weak exports to security conditions, the lack of strategic trade agreements, and high electricity tariffs, interest rates and taxation rather than to import duties. The World Bank did not respond to questions about the figures.