Lahore: National Tariff Commission (NTC) Secretary Khizar Hayat said on Thursday that gradual reduction in customs duties under National Tariff Policy will pose challenges for local industry but all legal protection mechanisms such as anti-dumping, countervailing, and safeguard measures are available to protect domestic manufacturers.
In a meeting with business community here at Lahore Chamber of Commerce and Industry (LCCI), he added, “Tariff reduction under the policy is not a one-year exercise but part of a gradual five-year framework, allowing industry sufficient time to adjust.”
He said that preparations for the upcoming federal budget have begun, and all recommendations will be sent to government after consultation with stakeholders.
In his welcome address, LCCI President Faheem Rehman Saigol expressed optimism that the meeting would help resolve tariff and import related issues faced by business community.
He appreciated the NTC role in protecting local industry from dumping and unfair subsidies. He Welcomed the National Tariff Policy (NTP), he said, if implemented carefully and effectively, it could become a game changer for Pakistan’s industry, asserting that any careless implementation could seriously harm local manufacturers.
He pointed out that lack of a clear distinction between raw materials, semi-finished, and finished goods in Pakistan creates confusion in tariff structures and leads to unfair competition. The presence of intermediate products further complicates the issue. Although the government aims to promote export-led growth, customs duties on raw materials are holding back industrial development and export targets. Giving the example of plastic and packaging sector, he said that the industry now needs a more specific and differentiated tariff treatment.
LCCI President stressed the need for a sector-wise approach in the NTP, taking into account each sector’s challenges, localization requirements, and availability of raw materials. He proposed zero percent customs duty on raw materials which are not available locally to reduce production costs and improve competitiveness.
He further suggested that customs duties on finished goods should not be reduced for at least the next two years so that local industry gets sufficient time to compete with imported products. A clear tariff gap between raw materials and finished goods is essential.
He also proposed time-bound tariff protection for raw materials produced locally to encourage value addition and domestic investment, while ensuring compliance with IMF agreements and free-market principles.
Highlighting the problems of paper industry, he mentioned, low-priced imports of double-sided coated bleach board are severely damaging local manufacturers and should be subject to anti-dumping duties.
About auto sector, the LCCI President apprehended that a sudden reduction in tariffs under National Tariff Policy 2025-30 could seriously threaten the local auto parts industry. He said that a cascading tariff structure is essential for localization and investment, and premature tariff cuts would increase imports and put additional pressure on foreign exchange reserves.
In his remarks, the NTC Secretary Khizar Hayat apprised the businessmen and industrialists that anti-dumping duties on double-sided coated bleach board have been imposed since January 07, which he termed a major relief for the paper industry. He said, although some cases are under judicial review, the NTC has acted within the legal framework to protect local industry.
He gave a detailed overview of the National Tariff Policy 2025-30, stating that its objectives include simplifying tariffs, boosting exports, improving competitiveness, and creating employment opportunities. He explained that customs duties, additional customs duties, and regulatory duties are being gradually reduced or eliminated.
The Secretary said that tariff reduction under the policy is not a one-year exercise but part of a gradual five-year framework, allowing industry sufficient time to adjust. He clarified that the purpose of eliminating additional and regulatory duties is not to encourage imports, but to remove distortions in the value chain, tariff anomalies, and unnecessary concessions.
He added that the Tariff Policy Board, Ministry of Commerce, and National Tariff Commission jointly review the policy’s impact every year, and immediate corrective measures will be taken wherever unexpected negative effects on local industry are observed.
SAARC Chamber’s Vice President Mian Anjum Nisar said that past Free Trade and Preferential Trade Agreements failed to adequately protect domestic industry, which is why local manufacturers are now under severe pressure. Referring particularly to agreements with China, he said that bringing a large number of tariff lines down to zero or very low duty has made local manufacturing uncompetitive.
He added that due to high electricity, gas, and financing costs, Pakistan’s cost of production is much higher than that of other regional countries, and in such circumstances further tariff liberalization would be unbearable for industry.
LCCI Senior Vice President Tanveer Ahmed Sheikh said, the NTC serves as the last line of defense for local industry, and that this role must be strengthened. He pointed out that other countries, especially India, impose anti-dumping duties at an early stage, whereas delays in Pakistan cause irreparable losses to industry. He stressed that to keep local industry alive, faster implementation of trade remedies, timely decisions, and strong monitoring mechanisms are essential.
NTC Director Aamir Shehzad Khan, former LCCI Vice President Tahir Manzoor Chaudhry and Executive Committee members were also present.