Tariffs Cut To 300 Items Under NTP Policy: Jam Kamal

ISLAMABAD, (UrduPoint / Pakistan Point News - 15th Aug, 2025) Federal Minister for Commerce Jam Kamal said on Friday that under the National Tariff Policy, duties on about 900 products would remain unchanged, while tariffs on 300 items — mostly not manufactured or available locally — had been reduced.

Responding to a calling attention notice during the Upper House session regarding duties on the import of over 300 tariff lines, including seafood, fruits, and vegetables, he said some tariffs were as high as 40 percent, which had now been lowered to facilitate imports for value-added production and general consumption.

He said the reductions would be implemented in phases — with some changes effective in one year, others over two to four years, and certain items in five years — allowing local industries time to adjust.

Jam Kamal said governance reforms had been introduced in the Trade Development Authority of Pakistan (TDAP) and the Export Development Fund (EDF), with a technical team and consultants now appointed to evaluate EDF’s Rs 30 billion fund requests before board consideration.

In the past, he said, large approvals were made without such technical scrutiny.

The minister said key vacancies in the Ministry of Commerce, including Head of Research and Head of Compliance, had been filled after years.

He added that Pakistan had, for the first time, developed trade agreements and institutional frameworks with the United Kingdom, Vietnam, Cambodia, and South Korea, while upcoming visits to the European Union, Geneva, and Brussels were planned to advance talks on the GSP Plus scheme and other trade matters.

He said a comprehensive working plan for the National Export Development Board (NEDB) and relevant ministries, outlining sector-specific issues and timelines, had been completed and would be presented to the Prime Minister at the next board meeting.

The minister said the National Tariff Board meets monthly, while the National Tariff Commission plays a vital role that still requires capacity enhancement.

He added that in the past, proposals were approved without detailed review, but now every recommendation is backed by data on local production, imports, exports, raw material sources, and industrial consumption.

Jam Kamal said the new approach aimed to balance the interests of importers and exporters while protecting local industry.

He acknowledged that favouritism in the past had harmed medium-sized enterprises, with some sectors constrained by unnecessary tariff barriers.

For the first time, he said, tariff rationalisation had been carried out — crediting Prime Minister Shehbaz Sharif and the federal cabinet.

He said a steering committee headed by the finance minister, and comprising the ministers for agriculture, industries, and commerce, had been formed to resolve sectoral issues promptly, with regular meetings continuing since the budget.

The government, he added, sought to develop an innovation-driven, competitive policy that prioritises small and medium enterprises while supporting large-scale industries.

He said Pakistan had recently secured the region’s most favourable tariff concessions from the United States without binding conditions — a major achievement for exports.

Jam Kamal said that while the Strategic Tariff Policy Framework (2021-25) was launched earlier, its implementation had lacked focus. After its completion in 2025, a new five-year framework would be introduced to set fresh goals and priorities.

He said the NEDB, chaired by the Prime Minister and including federal ministers and private sector representatives, aimed to boost exports through sector-specific strategies.

The number of sectoral councils had increased from 13 to 19, covering areas such as gems, metals, garments, leather, pharmaceuticals, surgical instruments, sports goods, logistics, tourism, and ICT.

These councils, comprising private sector members, are empowered to submit proposals to the government.

In the past, such proposals often went unanswered, causing disinterest, but the current government has engaged in detailed consultations, documented recommendations, and ensured federal and provincial participation in discussions.

Jam Kamal said the government was evaluating each sector’s current standing, Pakistan’s global position, and emerging opportunities to design a comprehensive, results-oriented trade policy.