Pakistan’s economy is facing significant challenges, including high inflation rates, unemployment, and fiscal deficits. Despite these issues, the country has shown steady GDP growth, bolstered by various sectors such as technology, textiles, and agriculture. The technology sector is thriving, with a growing startup culture and a talented pool of software engineers, presenting immense investment opportunities.

Pakistan’s planned import policy reforms aim to significantly shift the country’s economic strategy by recalibrating tariffs in line with industrialization and export goals. The government, led by Prime Minister Shehbaz Sharif, has approved a five-year roadmap to slash average customs tariffs from 19% to 9.5%, eliminate decades-old protections for industries like carmakers and steel producers, and simplify duty slabs from five to four. This reform is expected to boost exports by $5 billion once implemented, starting with the 2026 budget. By lowering tariff barriers, Pakistan can integrate more easily into the global economy, enhance industrial competitiveness, and enable manufacturers to join global supply chains.

Historically, high import taxes have made businesses inward-looking, creating an anti-export bias and limiting technological progress. Although there are concerns that lower tariffs could lead to higher imports and a balance-of-payments crisis, the expected faster export growth should reduce trade deficits and create more jobs. However, tariff reform alone is not enough; other policies must be improved to achieve significant export growth and global integration. Past liberalization efforts reduced tariffs but did not yield proportionate export growth, indicating the need for a comprehensive approach.

To successfully implement these reforms, Pakistan should focus on strengthening export policies, enhancing trade infrastructure, addressing non-tariff barriers, promoting technological upgrades, and diversifying export........

© The Spine Times