According to the Pakistan Institute of Development Economics, Pakistan’s complex tariff system imposes billions in economic cost and hurts industrial competitiveness. (Publish date: 11 Nov 2025)
Brief:
On 11 November 2025, the Pakistan Institute of Development Economics (PIDE) released a policy note warning that Pakistan’s convoluted tariff and protection-regime costs the economy billions annually. The note argues that the overly protective and complex system protects inefficiencies, raises consumer and producer costs, and limits integration into global value-chains. For Pakistan’s industrial sector—already held back by energy, credibility and external financing challenges—the tariff maze adds another barrier. Exports suffer from higher input costs, unpredictability and lack of harmonisation with global norms. PIDE recommends comprehensive tariff reform: rationalising rates, increasing transparency, aligning with trade agreements, and shifting from protection to competitiveness. For policymakers, the message is urgent: structural reform is necessary, not optional. For investors, the clarity and predictability of trade policy are increasingly important. Unless addressed, the hidden cost of tariffs may continue to erode Pakistan’s growth potential.
جہاں ہر خبر زندہ ہے