The 50-point gap behind tariff debate

The Express Tribune says Pakistan’s tariff debate turns on a 50.5 percentage-point difference between its average applied and bound tariff rates. The article argues that WTO figures count statutory customs duties, while the National Tariff Policy 2025-2030 also includes regulatory and additional customs duties, making the two measures difficult to compare directly.

Pakistan’s average applied MFN rate was 10.3% in 2024, close to Vietnam’s 9.5%, Thailand’s 9.9% and Indonesia’s 8%. But Pakistan’s average bound rate is 60.8%, compared with 11.7% for Vietnam and 10% for China, leaving policymakers more room to raise duties through measures such as SROs and Finance Acts. The article says this gap adds uncertainty for businesses considering investment and supply chains.

The piece argues that tariff reform should also reduce the gap between bound and applied rates and address barriers beyond tariffs. It says imported inputs can support productivity and export quality, while foreign value added accounts for 8.5% of Pakistan’s exports, against 37% in Vietnam and 29% in Thailand.