Measures available to protect manufacturers under NTP, legal mechanisms: NTC

LAHORE: Secretary of the National Tariff Commission (NTC), Khizar Hayat, said that the gradual reduction in customs duties under the National Tariff Policy and to protect local industry, all legal protection mechanisms such as anti-dumping, countervailing, and safeguard measures are available to protect domestic manufacturers. He said that preparations for the upcoming federal budget have begun and that all recommendations will be sent to the government after consultation with stakeholders. He was speaking at a meeting organized by the Lahore Chamber of Commerce and Industry (LCCI). At the start of the meeting, LCCI President Faheem Rehman Saigol welcomed the delegation of the National Tariff Commission and expressed hope that the meeting would help resolve tariff- and import-related issues faced by the business community. The meeting was attended by LCCI Senior Vice President Tanveer Ahmed Sheikh, SAARC Chamber Vice President Mian Anjum Nisar, Aamir Shehzad Khan, Director NTC, former Vice President Tahir Manzoor Chaudhry and Executive Committee Members Karamat Ali Awan, Rana Shouban Akhtar, Rana Nisar, Irfan Ahmed Qureshi and Syed Salman Ali. In his address, the LCCI President appreciated the role of the National Tariff Commission in protecting local industry from dumping and unfair subsidies. He welcomed the National Tariff Policy and said that if implemented carefully and effectively, it could become a game changer for Pakistan’s industry. However, he warned that careless implementation could seriously harm local manufacturers. He pointed out that the 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. He said that although the government aims to promote export-led growth, customs duties on raw materials are holding back industrial development and export targets. He emphasized that tariff policy must evolve as local industry develops. Giving the example of the plastic and packaging sector, he said that the industry now needs a more specific and differentiated tariff treatment. The LCCI President stressed the need for sector-wise approach in the National Tariff Policy; taking into account each sector’s challenges, localization requirements, and availability of raw materials. He proposed zero percent customs duty on raw materials that 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 the paper industry, he said that low-priced imports of double-sided coated bleach board are severely damaging local manufacturers and should be subject to anti-dumping duties. Speaking on the auto sector, the LCCI President warned that a sudden reduction in tariffs under the 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, Secretary NTC Khizar Hayat informed that anti-dumping duties on double-sided coated bleach board have been imposed since January 7, which he termed a major relief for the paper industry. He said that although some cases are under judicial review, the NTC has acted within the legal framework to protect local industry. Copyright Business Recorder, 2026