Does the country's tariff policy require a bold rethink?
Article Type
Article
Description
The notification of Pakistan’s National Tariff Policy (NTP) 2025–2030 has reignited debate on whether the country should maintain protectionist measures or move toward a more open, competitive trade regime. Current policies, characterized by high tariffs, low productivity, and dependence on government support, have contributed to inefficiency, anti-export bias, and recurring balance-of-payments crises. Historical perspectives, from Raul Prebisch’s infant industry argument to Bela Balassa’s critique of overvalued currencies and high tariffs, highlight the pitfalls of excessive protection and the importance of selective, strategic industrial policy.
The authors argue that Pakistan must overhaul its trade strategy to foster competition, innovation, and economic dynamism. Drawing lessons from Southeast Asian export-oriented economies like Thailand and Vietnam, the paper emphasizes the benefits of reducing tariffs, abolishing restrictive local content requirements, and integrating regionally to stimulate growth. By moving toward outward-looking policies, rationalizing tariffs, and promoting market-driven industrialisation, Pakistan can improve productivity, enhance export performance, and create a more sustainable economic trajectory.
Publication Source
THE EXPRESS TRIBUNE
Publication Date
10-6-2025
Pages
11
Recommended Citation
Nakhoda, Aadil. (2025, October 06). Does the country's tariff policy require a bold rethink?. THE EXPRESS TRIBUNE, . 11. https://ir.iba.edu.pk/faculty-research-press/582
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