IMF Slams Pakistan’s Protectionist Trade Policies

Описание: IMF Slams Pakistan’s Protectionist Trade Policies

Primary keyword included: IMF Pakistan Trade Policies



The International Monetary Fund (IMF) has strongly criticized Pakistan’s highly protectionist trade policies, warning that high tariffs and complex customs duties are hurting economic efficiency, exports, and long-term growth.

In its latest assessment under the Extended Fund Facility (EFF), the IMF highlighted that although Pakistan has reduced headline customs duties over the past decade, these cuts were offset by increased Additional Customs Duties (ACDs) and Regulatory Duties (RDs). When para-tariffs are included, Pakistan’s average tariff levels remain among the highest in the region.

The IMF report points out that tariff peaks in Pakistan’s auto sector exceed 150 percent, while agriculture and food processing sectors also remain heavily protected. According to the IMF, this complex tariff structure creates inefficiencies, misallocates resources, and benefits only a few large firms through exemptions, while discouraging exports and competition.

However, the IMF welcomed Pakistan’s newly approved National Tariff Policy (NTP) 2025–2030, calling it a critical reform agenda. The policy aims to simplify the tariff structure, reduce customs duty slabs, eliminate additional and regulatory duties, and align Pakistan’s trade regime with regional and global standards.

Under the NTP, Pakistan plans to reduce customs duty slabs from five to four and cap the maximum tariff at 15 percent by FY30. Additional customs duties will be phased out over three years, while regulatory duties will be eliminated within five years. A separate auto sector policy is also expected by July 2026.

The IMF estimates that full implementation of these reforms could significantly reduce Pakistan’s trade-weighted average tariff, boost exports, attract private investment, improve resource allocation, and ease public debt pressures.

Pakistan’s continued engagement with the IMF highlights the urgent need for trade liberalization. Failure to implement these reforms could prolong economic distortions and undermine stabilization efforts.

📌 Watch this video for a clear breakdown of how IMF trade reforms could reshape Pakistan’s economy.


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⏱️ Timestamps (Chapters)

00:00 IMF criticism of Pakistan trade policies
01:05 Why Pakistan’s tariffs are among the highest
02:15 Hidden duties: ACDs & RDs explained
03:30 Auto sector tariffs above 150%
04:40 Who benefits from tariff exemptions
05:45 National Tariff Policy 2025–30 explained
07:10 IMF-recommended trade reforms
08:30 Impact on exports, growth & debt
09:40 What happens if reforms fail



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