Experts for trade, taxation, industrial reforms to boost industry, exports

ISLAMABAD (13 November 2026): Experts at a roundtable have called for coordinated industrial, trade and taxation reforms, saying tariff rationalization alone cannot transform Pakistan’s economy without improvements in productivity, infrastructure, energy costs, access to technology and a predictable business environment.The roundtable, titled: “Making Tariff Reforms Work for Industry and Exports,” was organized at the 29th Sustainable Development Conference by Sustainable Development Policy Institute here. The experts also called for time-bound protection for industries, with clear sunset clauses instead of indefinite subsidies. Louie Dane, Senior Economic Advisor at British High Commission, Islamabad said Pakistan remained among the countries with the most restrictive trade regimes. Drawing a comparison with the English Premier League, he said international participation by foreign players and coaches had improved standards and productivity. Similarly, greater exposure to international competition could help Pakistani industries acquire technology, expertise and competitiveness.

Dr Kaiser Bengali, a renowned economist, argued that Pakistan’s industrial problems went beyond tariff structures, saying the country lacked a coherent industrial transformation policy. Its narrow export base and dependence on imported inputs had restricted industrial development. He called for policies that rewarded productive investment, local processing and job creation rather than speculation and vested interests. Suleman Ghani, former federal secretary for Industries and Commerce, questioning the need for a separate Ministry of Industries, suggested that its functions could be incorporated into the Ministry of Commerce, while specialized institutions such as the Engineering Development Board could perform technical functions. He said industrial development primarily required skilled labour, realistic exchange rates and rational tariffs to attract investment and technology.Dr Manzoor, international trade and customs facilitation expert, argued that Pakistan did not need an existing exportable surplus before opening its economy to international trade. Citing Vietnam, he said, investment, openness and access to imported inputs could create new industries and export capacity. He warned that trade-weighted average tariffs could give a misleading picture because high duties on certain products were not adequately reflected when their import volumes remained low. Hassan Masood Kunwar, a representative of Khyber Pakhtunkhwa Board of Investment and Trade. highlighted the province’s structural disadvantages, including its distance from seaports, high freight charges and prolonged closure of trade routes with Afghanistan and Central Asia. He said disruptions had severely affected businesses and forced some industries to close.

He urged the government to rationalize transportation costs and promote value addition in the mineral sector, particularly copper. Exporting minerals without adequate processing has deprived Pakistan of opportunities to develop local industries, establish complete value chains and generate greater economic benefits.Syed Wajid I. Bukhari, a representative of steel sector, said the steel industry is already facing a crisis when tariff reforms began in 2024, with companies closing, workers being laid off and manufacturers restructuring their businesses. Although the initial assessment suggested that the first two years of the policy would not adversely affect the sector, he warned that rising electricity prices, interest rates and taxes could create serious difficulties in subsequent years.Dr Anil Salman, Chair, Economic Security, Islamabad Policy Research Institute (IPRI), said the National Trade Policy needed to be aligned with industrial and taxation policies. He called for continuous monitoring instead of waiting for fixed three- or five-year reviews. Performance should be measured through new industries and exporters, productivity improvements and actual export growth.Rubina Akhtar, former chairperson of National Tariff Commission, said the establishment of a dedicated Tariff Policy Board was an important institutional step towards ensuring continuity, transparency and effective monitoring. She clarified that the policy specifically covered customs duties and did not extend sales tax or other import-stage levies.