Beyond tariff cuts

PAKISTAN cannot build a competitive industry by protecting it indefinitely. Nor can reducing protection, by itself, turn domestic manufacturers into exporters. Tariffs shape investment decisi­o­­ns, but competitiveness also depends on energy, te­­­chnology, scale, supply chains, market access, and security. A credible industrial strategy must address them together. Unconditional protection raises prices, blunts incentives to innovate, and rewards selling to a captive home market. Consu­mers finance inefficiency, and capital chases protected returns rather than export opportunities. Where…