Pakistan Business Council warns against quick customs duty cuts

The Pakistan Business Council (PBC) is cautioning the government against quickly lowering customs duties. They believe such decisions need careful evaluation to understand how they would impact imports and job losses. During a recent meeting in Islamabad, PBC Chief Executive Ehsan Malik emphasized that any cuts in import taxes should consider the high costs of manufacturing in the country. Key issues include energy prices, high interest rates, and difficulties in financing. Additionally, the PBC noted challenges such as low productivity and a heavy tax burden on formal businesses. Mr. Malik argued that the competitiveness of manufacturing is not just about tariffs. He stated that resolving issues like high energy costs and lack of access to long-term loans is essential. He warned that removing protective measures too soon could lead to many industries closing down, which would increase unemployment, turning Pakistan into a nation of traders. The PBC is urging the commerce ministry to collaborate with finance and energy officials to tackle these challenges. They also highlighted that countries hit by US tariffs might target Pakistan for its weak anti-dumping laws. There was an agreement to revisit the proposal to lower import tariffs, taking the PBC's feedback into account, especially in light of higher tariffs in neighboring countries like India and Bangladesh.