PM Shehbaz Forms Committee to Review Trade Tariffs 

Prime Minister Shehbaz Sharif has established a high level committee to review trade tariffs ahead of next year budget. Sources told ProPakistani that government, after the International Monetary Fund’s (IMF) proposal to reduce tariff, constituted a committee which will give recommendations to reduce tariff on specific goods. Sources said that government agreed in principle to modify its automobile sector liberalization plan, gradually withdrawing protection for local industries. The IMF has long expressed concerns over the protection granted to Pakistan’s industries, particularly the automobile sector. During recent talks, the Washington-based lender reportedly cited Australia’s automobile model as an example of successful liberalization. However, Pakistani officials pointed out that Australia only began importing vehicles after implementing reforms in the auto sector. Sources said Pakistani officials also noted that the United States imposes tariffs to protect its domestic industries, while the IMF is pressing Pakistan to open its markets to foreign companies. Sources also that the IMF has rejected Pakistan’s proposal to enhance financing facilities for exporters under the Export Finance Scheme. Pakistan had sought the IMF’s approval to further increase financial support for exporters under the EFS, which currently stands at Rs. 1 trillion. However, the IMF turned down the request, citing concerns over Pakistan’s fiscal stability and the potential strain on financial resources, the sources said. Earlier, the IMF had allowed Pakistan to increase the allocation from Rs. 778 billion to Rs. 1 trillion. Despite this, the global lender is unwilling to permit further financial backing, possibly due to concerns about fiscal discipline and sustainability. Unlike Bangladesh, India, and China—where governments allocate billions of dollars annually to support their exporters—Pakistan requires IMF approval under the conditions of its Extended Fund Facility (EFF) program. With IMF approval, Pakistan currently provides a concessional short-term financing facility under the EFS. The scheme benefits exporters, including manufacturers and trading companies, by offering credit through banks for exporting manufactured goods and services, particularly value-added products. The objective of the EFS is to boost exports by providing a dedicated credit facility with a tenure of up to 180 days, along with a rollover option for an additional 90 days.