Tariff cuts spark duty burden debate

A debate over Pakistan’s tariff reforms exposed competing views on whether import-duty reductions can strengthen local industry or whether other costs are the bigger obstacle to exports. At a policy dialogue in Karachi on Friday, speakers discussed the National Tariff Policy 2025-30, which seeks to cut customs-duty bands from five to four and lower the average tariff to 9.7% by FY2030.

Trade expert Manzoor Ahmad put the overall burden at 18.5% when additional and regulatory duties are included, while Tecno Group CEO Aamir Allawala said that approach made comparisons with other countries misleading. Pakistan Single Window’s Naveed Abbas Memon argued that slow border processes could blunt the benefit of lower duties, and FBR’s Mukarram Jah Ansari highlighted the challenge of replacing revenue as customs-duty receipts showed no growth in the current quarter.

Other speakers pointed to energy prices, financing costs, trade access and productivity as constraints on exports. Participants also discussed the European Union’s carbon border tax, effective from January 1, 2026, and the need for exporters to document emissions performance.