- The PM indicates that regulatory tasks will be deleted in 4 to 5 years.
- First says this decision to keep inflation under control.
- Number of service slabs reduced to four, let’s say first.
Friday, Prime Minister Shehbaz Sharif unveiled major pricing reforms, capping customs duties at a maximum of 15%.
Chairing a meeting on the national prices policy, Prime Minister Shehbaz said that additional customs and regulatory tasks would be abolished over the next four to five years.
“This decision is considered an important step towards economic improvement which will allow growth led by export. This decision should not only help control unemployment but also to keep inflation under control,” said the Prime Minister.
He argued that this would also encourage international investment and would help create new job opportunities.
The Prime Minister has ordered that additional customs duties (currently 2% to 7%) and that regulatory rights (currently varying from 5% to 90%) are eliminated over the next four to five years.
Likewise, customs duties will be capped at a maximum of 15%, because currently, for some articles, the rate exceeds 100%, read a press release published by the Prime Minister’s office.
The number of service slabs has also been reduced to four to facilitate the legal complexities linked to imports and provide a playground to various industries.
Prime Minister Shehbaz reiterated that his government was determined to develop a strong economy, create job opportunities and eliminate inflation.
He said that after in -depth consultations with national and international economic experts, a complete fundamental economic reform plan had been made, and the decision to reduce customs tasks was also one of these reforms.
The Prime Minister’s “historic decision” will open the economy to foreign investment and guarantee that national industries have easy and affordable access to raw materials, intermediate goods and equipment, the press release read.
In addition, increased competitiveness will allow local industries to become more efficient and competitive, to help control inflation and stabilize the national currency.
The Prime Minister argued that pricing would help stabilize the deficit in the current account and contribute to a higher collection of income, and has also trained an implementation committee on the subject.