LCCI opposes proposed EDB tariff rationalisation

LAHORE: Lahore Chamber of Commerce and Industry (LCCI) President Mian Abuzar Shad on Tuesday opposed the proposed changes under the draft National Tariff Policy 2025-30 presented by the Engineering Development Board (EDB).

He apprehended that the new policy could have serious repercussions for Pakistan’s industrial base, trade balance and economic sovereignty.The LCCI president said that while reforming the tariff regime was important, the current proposal was likely to increase Pakistan’s reliance on imports, shifting the country further away from a manufacturing-driven economy.

He said that by substantially lowering import duties and eliminating additional customs duty (ACD), regulatory duty (RD), the government risks transforming Pakistan into an import-dependent economy.

Shad was of the view that lower tariffs would lead to a surge in imports, thereby putting immense pressure on the current account and foreign exchange reserves, which were already under stress.

“Pakistan cannot afford such a liberalisation at the cost of macroeconomic stability,” he emphasised.The LCCI also objected the proposed tariff spread of zero to 15 per cent as too narrow to reflect the developmental needs of a diverse industrial landscape.

“Even globally, competitive and specialised economies such as China maintain a much wider tariff spread to protect sensitive sectors.This narrow spread will blur the line between manufacturers and importers, this discouraging local production,” he asserted.

These changes, he said, would result in revenue losses for the government while exacerbating the public debt burden.“The expected drop in customs revenue will need to be compensated through indirect taxation or further borrowing, both of which will hurt the economy.” Pointing to the already high cost of doing business in Pakistan, the LCCI emphasised that this move would further deter industrial growth. “Our industries are already burdened by high energy tariffs, inefficient labour markets and a complex tax regime. These tariff reductions could lead to shutdowns and job losses,” he maintained.

The LCCI urged the government to reconsider this premature rationalisation and engage in meaningful consultation with industry stakeholders to develop a tariff structure that supports both industrialisation and exports.