The International Monetary Fund (IMF), in its latest policy report, has reiterated the need to simplify and make transparent Pakistan’s tariff system and said that the current reform process should continue without interruption. According to the report, the National Tariff Commission (NTC) must rely less on external advisors in policymaking so that transparency in decisions and institutional autonomy can be improved.
The IMF pointed out that it is necessary to reduce the influence of lobby groups, for which increasing the technical capacity of the NTC is a prerequisite. At the same time, the organisation emphasised that weaknesses in Pakistan’s customs structure are limiting the impact of tariff reforms, so strengthening the enforcement system is the need of the hour.
The report also recommends abolishing Section 18A and the Fifth Schedule while limiting the discretionary use of tax exemptions under Section 19 of the Customs Act.
According to economists, the IMF’s recommendations are actually a roadmap for policy continuity and institutional capacity building. They say that if Pakistan continues with continuous reforms based on transparency and autonomy, the business environment will improve and investor confidence will also increase.
