Lahore: The president of the Lahore Chamber of Commerce and Industry (LCCI), Mian Abuzar Shad, opposed the proposed modifications on Tuesday as part of the 2025-30 national policy project presented by the Engineering Development Council (EDB).
He apprehended that the new policy could have serious repercussions for the industrial basis of Pakistan, trade balance and economic sovereignty.
He said that by considerably reducing import duties and eliminating additional customs duties (ACD), regulatory rights (RD), the government is likely to transform Pakistan into an economy dependent on import.
The alose was of the opinion that the lower prices would result in an increase in imports, thus exerting immense pressure on the current account and the exchange reserves, which were already under stress.
“Pakistan cannot afford such liberalization at the cost of macroeconomic stability,” he said. The LCCI also objected the propagation pricing proposed from zero to 15% as too close to reflect the development needs of a diversified industrial landscape.
“Even in the world, competitive and specialized savings such as China maintain a much wider price propagation to protect sensitive sectors. This close propagation will scramble the border between manufacturers and importers, this discouraging local production,” he said.
These changes, he said, would result in loss of income for the government while exacerbating the burden of public debt. “The expected decline in customs income must be compensated through indirect tax or additional loan, which will harm the economy.” Highlighting the already high cost of doing business in Pakistan, the LCCI stressed that this decision will further deter industrial growth. “Our industries are already overwhelmed by high energy prices, ineffective labor markets and a complex tax regime. These prices reductions could cause closings and job losses,” he maintained.
The LCCI has urged the government to reconsider this premature rationalization and to engage in a significant consultation with industry stakeholders to develop a tariff structure which supports both industrialization and exports.
