Commerce Division working on formulation of Strategic Trade Policy Framework 2018 – 23

Commerce Division is currently working on the formulation of Strategic Trade Policy Framework 2018-23 in consultation with all the relevant stakeholders. One of the key enablers identified for increasing the competitiveness of export sector is rationalization of tariffs on critical inputs of the export-oriented industry.

Commerce Division and National Tariff Commission (NTC) have undertaken an exercise to identify the inputs/raw materials of the export oriented products and the tariff structure of these inputs. The objective is to rationalize the tariffs in order to make exports more competitive and facilitate participation of local manufacturers, including SMEs, in global and regional value chains.

Commerce Division and NTC have identified tariff lines which are being considered for revision of tariff in the Budget 2018-19, to bring positive improvement in the tariff structure. While a comprehensive tariff policy for industrial expansion including the medium and long-term measures is being developed, in the short term the immediate rationalization of tariff is being considered on 515 tariff lines.

The proposed tariff rationalization will improve the competitiveness of the leading export sectors including textiles, apparel, leather, spices, chemical products, plastics and articles thereof, iron and steel.

The list of the tariff lines along with the current and proposed tariff structure has been placed at the Commerce Division’s website (www.commerce.gov.pk). The feedback on the proposed tariff structure has been invited from all the stakeholders by March 28th, 2018.

Following chart summarizes the proposed changes: