According to pakistani media, the  government has agreed to a key International Monetary Fund (IMF) demand to lower trade barriers by reducing effective average import tariffs by one-third over the next five years.  The move, which aims to increase foreign competition, will bring the average tariff down to 7.1%, with a major focus on liberalizing the automobile and minerals sectors.   The trade liberalization plan also includes the removal of non-tariff barriers in the minerals sector, particularly in resource-rich Balochistan. Authorities believe Free Trade Agreements, especially with China, have led to high regulatory duties, as the government has used them to limit imports.  The tariff reduction is expected to result in an estimated revenue loss of Rs278 billion, but officials anticipate increased economic activity will offset this through higher tax collection. The agreement brings Pakistan closer to securing a Staff-Level Agreement with the IMF, a necessary step before the lender’s Executive Board can approve the release of over $1 billion.    The government has committed to eliminating additional customs duties, cutting regulatory duties by 75%, and withdrawing concessions under the fifth schedule of the Customs Act. Pakistan has assured the IMF that the federal cabinet will approve the new tariff policy before the end of June, with changes reflected in the fiscal year 2025-26 budget. The government has also pledged not to introduce new regulatory duties unless essential and to phase out existing duties through a sunset clause. Authorities argue that Pakistan’s overall tariffs are already lower than they appear due to high duties on specific items such as alcoholic beverages. However, auto sector tariffs remain high, with some reaching 196% of a vehicle’s price. (ICE ISLAMABAD)

Fonte notizia: profit pakistan today