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Trade, Industry and Competition in Pakistan

Author

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  • Muhammad Zeshan

    (Pakistan Institute of Development Economics, Islamabad)

Abstract

We believe that high tariff rates have increased the overall cost of production in Pakistan, and the domestic prices of many products have become much higher than the international market prices. Reducing import tariffs will reduce not only the domestic prices but will also increase the export competitiveness of the country because many imported products are complementary intermediate inputs in various exporting industries. Further, it will allow the country to take advantage of the augmented technology in the new imported products, which will be helpful to add new products to its export portfolio. Hence, we eliminate the import tariffs of the 10 major import items of Pakistan such as cooking oil from Indonesia; textiles, chemicals, basic metals, machinery and electrical equipment from China; mining, coke and petroleum from the United Arab Emirates; and mining and chemicals from the Kingdom of Saudi Arabia.

Suggested Citation

  • Muhammad Zeshan, 2023. "Trade, Industry and Competition in Pakistan," PIDE-Working Papers 2023:15, Pakistan Institute of Development Economics.
    • Handle: RePEc:pid:wpaper:2023:15
    as

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    References listed on IDEAS

    as
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    Keywords

    Import Tariffs; Industry; Trade; CGE; Pakistan;
    All these keywords.

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