Does the country's tariff policy require a bold rethink?

KARACHI:

The notification of the National Tariff Policy (NTP) 2025-2030 at the start of the current fiscal year has sparked significant debate between those who call for a more open and freer trading economy with minimal government interventions and those who recommend protection for 'infant industries' to promote domestic industrialisation.

The Economic Advisory Group stands at the forefront in advocating for tariff reforms. Pakistan's tariff regime, plagued with high tariffs, low productivity levels, and poor investment rates coupled with low uptake of bank loans from the private sector, suggests that there is a much-needed rethinking of trade strategies. It is imperative to induce more dynamism in the market, which will require greater levels of competition and efforts to foster innov