Major changes are inevitable in Pakistan’s tariff and customs system; new IMF recommendations have emerged

Islamabad: To restabilise the economic structure in Pakistan, the IMF has issued new detailed proposals, according to which the government should eliminate unnecessary complexities in the tariff system and make it clear and workable. The international organisation says that to improve the reputation of the National Tariff Commission, it is necessary for it to be independent of the influence of external consultants and lobbying networks.

The IMF also pointed out in its report that weak enforcement and arbitrary tax exemptions within Customs are undermining the objectives of tariff reforms. Therefore, it has been emphasised to eliminate Section 18A and the Fifth Schedule, as well as to prevent the misuse of exemptions available in Section 19 of the Customs Act.

According to global financial experts, Pakistan’s import structure is constantly facing problems, and unbalanced exemption policies are burdening the economy. If the country implements these reforms in a phased manner, trade transparency will increase, revenue will improve and confidence in the policy will increase.