Industry warns against abrupt tariff cuts

Petrochemical, plastic sectors need policy stability for investment, says minister

ISLAMABAD:

Federal Minister for Commerce Jam Kamal Khan met representatives of the Pakistan Business Council and industrial stakeholders, including Gatron Industries CEO Taimur Dawood, to discuss tariff rationalisation, export sustainability and manufacturing challenges, according to a statement issued by the Ministry of Commerce on Friday.

Participants discussed the impact of tariff reforms, anti?dumping duties and cost structures affecting petrochemicals, plastics, polyester and small and medium enterprises (SMEs). Industrial representatives warned that abrupt across?the?board duty reductions could hurt domestic manufacturing, government revenues and industrial investment. They stressed the need to distinguish between genuine industrial exporters and trading activities that rely heavily on imports without significant local value addition.

Kamal emphasised that Pakistan's industrial and export ecosystem must support long?term manufacturing growth and sustainable industrialisation. He observed that emerging industries need time, infrastructure development, capital recovery and policy stability before becoming globally competitive. Policy decisions should remain responsive to changing economic realities and geopolitical developments, he said, noting that Pakistan's economic environment differs significantly from many regional competitors due to security challenges, energy costs and regional uncertainties.

Participants raised concerns about the informal economy and uneven enforcement, noting that compliant industries often face unfair competition from undocumented commercial importers operating outside the tax and regulatory framework.