Posted on 19 May 2022
To arrest the Pakistani rupee’s slide against the dollar, Pakistan’s government is planning on increasing regulatory duties on imports of many commodities including steel.
The government has prepared a draft of the revised plan, to reduce imports by nearly $1 billion a month through a combination of tariffs and non-tariff measures. The plan’s implementation is subject to approval from newly elected Pakistani Prime Minister Shehbaz Sharif, Kallanish notes.
Under the plan, the government is eyeing an increase in regulatory duties on cold rolled coil from the existing 5% to 10%, which will ultimately benefit domestic producers and reduce the import burden.
Commodities subject to duties revision include car tyres, home appliances, power generation machinery, cars above 1800cc, ceramics and mobile phones. Energy, food, and export-oriented commodities have been excluded from the revision.
Authorities met finance ministry representatives on Tuesday to discuss the implementation of the plan. The finance minister, however, suggested authorities reduce duties on certain items and revise the plan accordingly before sharing it with the prime minister. A decision on whether the plan is implemented is expected by 25 May.
Source:Kallanish
