Aurangzeb stresses tariff reforms key to export-led economy
Finance Minister Muhammad Aurangzeb on Wednesday stressed that planned tariff reforms that would reduce import duties were the key to an export-led economy in Pakistan.
He made the remarks during a post-budget press conference where he expanded upon the federal budget proposed yesterday for the upcoming fiscal year.
Maintaining an aggressive stance on fiscal consolidation, as required by the International Monetary Fund (IMF), Aurangzeb yesterday still managed to offer some notional relief to the salaried class in the federal budget for FY2025-26, along with incentives for the real estate and construction sectors to revive the struggling industrial sector and stimulate economic growth.
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Addressing a media briefing in Islamabad today, Aurangzeb reiterated the significance of the tariff reforms under the National Tariff Policy.
“People ask us that the revenue will decline but if we have to take this country forward towards an export-led discussion […] I want to go into the details of the steps we have taken,” he said.
The minister noted that additional customs duties were removed in four “lines”, while they were reduced in 2,700 tariff lines, which were “directly linked with those raw materials on the basis of which exporters will benefit”.
He stressed these measures were just for the upcoming year and more will be taken gradually.
Expanding further on the topic while answering a query. Aurangzeb said: “This is an East Asia moment for Pakistan. Whatever was available in the fiscal space is the direction of travel. We have tried to reduce tariffs. This is not the eventual end state.”