Government Reveals Plan to Reduce Rising Production Costs
Federal Minister for Commerce, Jam Kamal Khan, announced that the government has created a plan to reduce production costs and boost manufacturing in Pakistan.
Speaking at the Lahore Chamber of Commerce and Industry (LCCI) on Wednesday, Khan emphasized the need for a supportive business environment to reduce unemployment and support small and medium enterprises (SMEs).
He said the Ministry of Commerce is committed to staying in touch with the business community to understand and solve their problems, focusing on trade, export, import, manufacturing, and tariffs.
Khan acknowledged the challenges like circular debt, IMF conditions, and inefficiencies affecting consumers and assured that Prime Minister Shehbaz Sharif is committed to involving all relevant parties in solving economic issues.
LCCI President Kashif Anwar welcomed Khan and outlined the business community’s struggles, including inflation, currency depreciation, high energy costs, high interest rates, and increased delivery charges.
Anwar noted that recent regulations have increased the tax burden on registered individuals and suggested a new tariff structure: 0% duty on basic materials, 5-10% on intermediate goods, and higher duties on semi-finished and consumer goods to simplify the system.
He also recommended reducing duties on machinery and intermediate goods to support technological progress.
Anwar emphasized the importance of accessing untapped markets like Africa, Central Asia, and ASEAN to boost exports and highlighted potential sectors like halal food, pharmaceuticals, IT, and engineering.
He mentioned the implementation of a barter trade system with Iran, Afghanistan, and Russia, hoping to improve trade with neighboring countries.
