Was Pakistan ever an open economy?

The Express Tribune published an opinion piece by a senior fellow at the Pakistan Institute of Development Economics that asks whether Pakistan was ever genuinely open to trade. The writer argues that the World Trade Organisation's tariff averages can understate protection, because they weight duties by import value and leave out regulatory and additional duties. A fuller assessment, he says, must also examine tariff peaks and the total tax burden on imports.

Citing the 2019 tariff policy, the World Bank and the Asian Development Bank, the author says reform was recommended long before the current National Tariff Policy 2025-30. He notes that a 2022 WTO review found more than 40% of tariff lines above 15%, and that trade-related taxes made up over 40% of total tax revenue in 2023, against a global average of about 5%.

The article argues that predicted damage to manufacturing, revenue and the external account has not materialised, citing manufacturing growth above 6.5%, record reserves and exports up 10% in the opening quarter of the current fiscal year. It cautions that many factors besides tariffs also shape these outcomes, and concludes that the real choice lies between shielding industries indefinitely and helping them become competitive.