Reduced duty on import of Industrial raw material

Abdul Razak Dawood, Prime Minister’s Advisor on Commerce and Investment, has claimed that in the coming federal budget the government will reduce tariffs on raw materials. The enlisted materials are; textiles, pharmaceuticals, chemicals, dairy, food processing, engineering and footwear etc. Moreover, there should be no duty on industrial raw material. As the philosophy of Commerce Ministry’s budget proposals is to encourage and support domestic industry for “Make in Pakistan”, the reduction in duties on raw materials will increase exports. The concept of the anti-export bias is also a challenge which determines which sector/industry needs more support to raise exports. Industries that need support include glass, food (mangoes, potatoes, Kinnows, dates), engineering (two wheelers and three wheelers), transformers and cutlery. The Wazirabad based cutlery industry’s quality is very close to international standards and if they are given support, their exports will increase. In textiles, home textile, towels, and garments need support. A few sectors of textile industries need major support such as ladies garments, sweaters, suits, shirts. In the upcoming budget, these sectors are subjected to be supported.