The Government reduced tariffs by Rs. 160 billion during the last fiscal year. The reductions were introduced under the National Tariff Policy.
The National Assembly Standing Committee on Commerce was informed about the measures. Officials said the tariff relief contributed to exports worth $1.27 billion.
The Commerce Secretary briefed the committee about the policy and its results. He said the Government continued its tariff relief efforts during the current fiscal year.
Another Rs. 120 billion in tariff relief has been provided during the current fiscal year. The measure aims to support exporters and reduce costs for businesses.
Committee members questioned whether the latest tariff reductions would increase exports. They also asked how the government would measure the results.
The Commerce Secretary said the impact would be reviewed at the end of the financial year. The assessment will determine whether the tariff measures achieved their intended goals.
The committee also received details about other export-related initiatives. Officials said the Government had established the EXIM Bank to support exporters.
The government has also removed taxes on exports, according to the briefing. These steps are aimed at reducing expenses for businesses involved in international trade.
Officials also discussed changes to the Export Development Fund Board. Private sector representation on the board has been increased.
Government representatives now account for six of the board’s 23 members. The change is intended to provide greater private sector participation.
The committee also considered a proposal to establish new chambers of commerce in Karachi. The proposal could create several chambers across different areas of the city.
Farooq Sattar suggested establishing the proposed chambers on a district basis. This could allow separate chambers to operate in different districts.
Committee Chairman Javed Hanif described the proposal as a new initiative. A representative from the Law Ministry also highlighted a legal concern.
The ministry representative said a new private member’s bill could not be considered immediately. An earlier draft would first need to be approved or rejected.
The committee decided to seek legal opinions before proceeding with the proposal. The Commerce and Law ministries will provide their respective views.
The tariff relief measures are part of broader efforts to promote exports. The Government aims to make Pakistani businesses more competitive.
Lower tariffs can reduce production costs for industries using imported inputs. However, lawmakers want evidence that these savings will translate into higher exports.
The actual impact of the latest tariff cuts will be reviewed later. The assessment will take place after the current financial year ends.
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The committee’s discussion highlights the need to measure the results of tariff reforms. Export growth will remain an important indicator of their effectiveness.
