Is a multilateral full trade liberalization policy effective in Pakistan?

Muhammad Zeshan

No 2022:87, PIDE Knowledge Brief from Pakistan Institute of Development Economics

Abstract: The national tariff policy in Pakistan emphasizes on the gradual elimination of tariffs on imported raw materials, and intermediate products. Moreover, the cascading principle suggests a lower import tariff rate on raw materials compared to the final output. However, this principle deviates in Pakistan, where a product is used as input in a sector but is considered an output in another sector. Various factors add to this distortion such as favoritism in protection policy, political economy and rent-seeking behavior by many firms (Nasir, 2020).

Pages: 4 pages
Date: 2022
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