Abdul Razak Dawood had a telephonic interview with a New York-based international news agency, Bloomberg where the topic of discussion was ridiculously high duties. Therefore, it was stated that customs duties on input items needed by pharmaceutical, chemical, engineering and food processing industries would be reduced by 3% to 10%.
This will not only help the local industry grow but will also magnify country’s exports and curtail the percentage of finished imported goods.
To increase the industrial productivity and speed up the manufacturing, Pakistan will cut taxes on imports of raw materials to bring about an economic growth.
The decision of paring import taxes will be a big leap in Pakistan’s policy shift as total tax revenue yielded by levies on inbound shipments is more than 40%
“We take imports as an evil. This misperception must go away,” he said. “Without imports, there will be no increase in exports,” he said.
There has been no witnessing of a revealing growth in exports in the past 10 years as the average came up to billion annually.
Now with the new schemes in place, the government hopes that the average will shift to $25 billion.
