The Businessmen Panel (BMP) of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has strongly opposed the federal government’s recent decision to reverse tariff cuts on imported industrial raw materials, warning that the move will severely damage domestic industry, accelerate inflation, and weaken the country’s already fragile export performance.
In a statement issued on Sunday, BMP Chairman Mian Anjum Nisar criticized the imposition of additional duties on essential raw materials, stating that the policy shift is regressive and anti-industry at a time when the manufacturing sector is already struggling due to high energy costs, interest rates, and policy uncertainty. He said that restoring duties that were earlier removed under the Tariff Rationalization Policy will disrupt supply chains and increase the cost of doing business for import-dependent industries.
Mian Anjum Nisar said the government’s reversal of its own tariff relief measures sends a negative signal to both local and foreign investors. He pointed out that the Tariff Policy Board had originally implemented duty cuts to support industrialization and value addition, aligning with the government’s broader economic goals. However, the recent reversal appears to prioritize short-term revenue collection over long-term economic sustainability.
He argued that in the current climate of persistent inflation, sluggish industrial activity, and declining exports, any policy that increases the cost of industrial inputs will have a cascading negative effect on the entire economy. “Reinstating duties on raw materials-especially those not locally produced-is like punishing the productive sector for the government’s fiscal mismanagement,” said Nisar. “This is not the time to choke industry; it is the time to revive it.”
The BMP chairman noted that many small and medium enterprises (SMEs) rely heavily on imported raw materials for their survival. These businesses are already under stress due to a lack of financing, low demand, and rising utility bills. The re-imposition of import duties will add another layer of pressure, pushing many SMEs toward closure or informal operations. He urged the government to reconsider its decision and hold consultations with stakeholders before implementing such drastic changes in trade policy.
Mian Anjum Nisar emphasized that the competitiveness of Pakistani exports is directly linked to the availability of affordable and high-quality inputs. With global competition tightening and regional countries offering subsidies and incentives to their industries, increasing duties on raw materials will only widen the gap between Pakistan and its competitors. He said that the country cannot hope to boost exports while making it more expensive for its industries to produce goods for international markets.
He also highlighted the contradiction in the government’s approach, where it claims to support export-led growth while simultaneously making raw materials more expensive. “You cannot have it both ways. If you want exports to grow, you must reduce input costs. Reversing tariff relief and imposing duties will achieve the opposite,” he said.
Nisar stated that the business community fully understands the government’s fiscal constraints but argued that the solution should not come at the cost of destroying industrial viability. He urged the Ministry of Finance and the Tariff Policy Board to identify alternative revenue sources that do not penalize the formal industrial sector.