ISLAMABAD: Pakistan is reducing tariffs on industrial raw materials and intermediary goods to make its industries more competitive and support exporters, Finance Minister Muhammad Aurangzeb said on Wednesday, calling it a key part of the government’s tariff reform plan.

The National Tariff Policy 2025-30, announced in June, seeks to phase out additional customs duties, simplify tariff slabs and lower import costs for manufacturers to strengthen the country’s export base and promote productivity-led growth.

Speaking at the Karachi Chamber of Commerce and Industry, Aurangzeb said the government’s immediate focus was on reducing input costs for businesses that contribute to exports.

“We had a clear view that in the first instance, we should take down the industrial raw material and the industrial intermediary,” he said. “And because of that, the exporters who need help should help the exporters.”

He said while some business leaders feared the reforms could hurt domestic production of raw material, the policy could also become a turning point for Pakistan’s economy.

“There was a point of view that the whole industry will be de-industrialized, that the industry will be completely finished and we will become a trading community,” Aurangzeb said. “And the other view was that this can be an East Asia moment for Pakistan.”

Aurangzeb added that the government remained open to adjustments, saying, “If we have to tweak it, we will tweak it. Because no one has a final word on wisdom.”

He also said the government was moving toward a more consultative policymaking process with industry, academics and think tanks contributing year-round rather than just during the budget cycle.

“We will make the budget together with you,” he said, adding that his team will be available for consultations throughout the year to help take the country forward.