Commerce Minister Holds Consultation With PBC, Industrial Representatives On Tariff Reforms

ISLAMABAD, (APP - UrduPoint / Pakistan Point News - 8th May, 2026) Federal Minister for Commerce Jam Kamal Khan held a detailed meeting with representatives of the Pakistan Business Council and leading industrial stakeholders, including CEO of Gatron Industries Limited and Novatex Limited, Taimur Dawood, to discuss industrial competitiveness, tariff rationalization, export sustainability, and challenges facing Pakistan’s manufacturing sector.

During the meeting, participants discussed the broader impact of tariff reforms, anti-dumping duties, and the cost structure affecting local industries, particularly the petrochemical, plastics, polyester, and SME sectors,said a release issued here on Friday.

Industrial representatives informed the Minister that while tariff rationalization and trade liberalization are important objectives, abrupt across-the-board duty reductions could adversely affect domestic manufacturing, government revenues, and industrial investment.

They stressed the importance of distinguishing between genuine industrial exporters and trading activities that rely heavily on imports without contributing significantly to local value addition.

Federal Minister Jam Kamal Khan emphasized that Pakistan’s industrial and export ecosystem must support long-term manufacturing growth and sustainable industrialization.

He observed that emerging industries require time, infrastructure development, capital recovery, and policy stability before becoming globally competitive exporters.

The Minister stated that policy decisions should remain responsive to changing economic realities and geopolitical developments.

He noted that Pakistan’s economic environment differs significantly from many regional competitors due to security challenges, energy costs, law-and-order concerns, and regional uncertainties, making direct comparisons with other economies difficult.

Participants highlighted concerns regarding the informal economy and uneven enforcement mechanisms, noting that compliant industries often face unfair competition from undocumented commercial importers and unregulated sectors operating outside the tax and regulatory framework.

Jam Kamal Khan stressed the importance of stronger enforcement mechanisms to ensure fair competition and protect registered industries contributing to the formal economy.

He observed that sustainable industrial growth requires balanced policymaking, consistent implementation, and effective regulatory oversight.

The meeting also discussed challenges faced by Pakistan’s petrochemical and downstream chemical industries due to fluctuating global raw material prices, high production costs, and changing international market dynamics. Stakeholders particularly underlined the strategic importance of downstream industries, petrochemicals, PVC, plastics, and value-added manufacturing for Pakistan’s future industrial growth and export diversification.

Industrial representatives informed the Minister about ongoing and planned investments in Pakistan’s manufacturing sector, including expansion projects involving international partners and foreign investors. They emphasized that stable industrial policies and supportive tariff structures are essential to encourage further investment and strengthen industrial self-reliance.

Jam Kamal Khan observed that industrial development globally has historically been supported through phased protection and strategic industrial policies. Referring to examples from South Korea, China, Japan, and the United States, the Minister noted that strong domestic industries are built gradually through policy consistency, investment support, and market stabilization.

The Minister reaffirmed the Ministry of Commerce’s commitment to continued consultations with the business community and industrial stakeholders to formulate practical, balanced, and sustainable trade policies aimed at enhancing exports, strengthening manufacturing, supporting SMEs, and improving Pakistan’s long-term economic resilience.