National Tariff Policy being formulated to attract investment

December 11, 2018: The government is in process of formulation of National Tariff Policy (NTP) to increase employment opportunities by attracting efficiency-seeking investment in manufacturing sector.

The other objectives are to make tariff regime transparent and predictable and also lessen distortions in domestic price structure and improve consumer welfare by reducing burden of excessive protection.

It may be noted that the government does not issue a specific policy related to imports. However, an Import Policy Order is issued periodically which contains regulatory provisions related to imports. The last Import Policy currently in vogue is Import Policy Order, 2016.

Sources at Commerce and Textile Division while highlighting aims of NTP on Tuesday said these are to remove anomalies in tariff structure which is causing distortions between sectors and in value chain of same sectors, and to improve competitiveness of manufacturing including the export sector, through duty free access to imported raw materials by rationalizing tariff structure.

According to Pakistan Bureau of Statistics, the country has earned foreign exchange of US $ 43,634.2 million during two years including 20,422.2 million during 2016-17 and 23,212 million during 2017-18).

The break-up showed that through food group, Pakistan earned US $ 3711.2 million during 2016-17 and US $ 4805.8 million during 2017-18, the country earned through textile group US $ 12,450.7 million during 2016-17 and US $ 13521.7 million during 2017-18 and through petroleum group & coal, the country earned US $ 189.3 million during 2016-17 and US $ 393.6 million during 2017-18.

Similarly, Pakistan earned US $ 3096.5 million during 2016-17 and US $ 3387.9 million through other manufactures group while US $ 974.5 million in 2016-17 and US $ 1103 million in 2017-18 were earned through other commodities.

(APP)