Report

Import Duties and Performance : Some Stylized Facts for Pakistan

Show simple item record

collection.link.86
https://openknowledge.worldbank.org/handle/10986/2194
collection.name.86
Foreign Trade, FDI, and Capital Flows Study
dc.contributor.author
Varela, Gonzalo
dc.contributor.author
Gambetta, Juan Pedro
dc.contributor.author
Ganz, Federico
dc.contributor.author
Eberhard, Andreas
dc.contributor.author
Franco, Sebastian
dc.contributor.author
Lovo, Stefania
dc.date.accessioned
2020-06-11T18:54:11Z
dc.date.available
2020-06-11T18:54:11Z
dc.date.issued
2020-05
dc.date.lastModified
2020-10-28T10:03:48Z
dc.description.abstract
This note discusses the role that import duties have in Pakistan’s economy, and their links with export competitiveness. Import duties play two key roles. First, they are a source of tax revenues for governments. Second, when imposed on a product, they create a wedge between its world price, and the price paid domestically (as well as a wedge between its domestic price, and the price of its substitute in the domestic economy). These wedges affect the allocation of resources. They divert resources away from export markets - in which firms will only fetch world prices for the product - and into the domestic market, effectively creating an anti-export bias. Thus, an import duty is implicitly an export duty. When these duties are applied on inputs that different sectors use to produce, the duty induces firms to substitute away from that - now more expensive - input, and into other substitutes, thus affecting the otherwise optimal technological choice of firms, as well as increasing their production costs. This note is organized as follows: the first section presents a snapshot of import duties in Pakistan. The second section empirically examines the ways import duties induce an allocation of resources that is different from the one that will be obtained without the duty distortion. The third section looks at the role of tariff policy in the context of the COVID-19 (Coronavirus) pandemic. The fourth section briefly describes the recent changes in the tariff policy institutional arrangement. The fifth section concludes and provides policy recommendations moving forward.
en
dc.identifier
http://documents.worldbank.org/curated/en/226941591075288820/Pakistan-Economic-Policy-for-Competitiveness-Import-Duties-and-Performance-Some-Stylized-Facts-for-Pakistan
dc.identifier.uri
http://hdl.handle.net/10986/33886
dc.language
English
dc.publisher
World Bank, Washington, DC
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo
dc.subject
IMPORT DUTY
dc.subject
TRADE POLICY
dc.subject
GLOBAL VALUE CHAIN
dc.subject
REGIONAL TRADE
dc.subject
TRADE LIBERALIZATION
dc.subject
EXPORT COMPETITIVENESS
dc.subject
FREE TRADE AGREEMENT
dc.title
Import Duties and Performance
en
dc.title.subtitle
Some Stylized Facts for Pakistan
en
dc.type
Report
en
okr.crossref.title
Import Duties and Performance
okr.date.disclosure
2020-06-02
okr.doctype
Economic & Sector Work
okr.doctype
Economic & Sector Work :: Foreign Trade, FDI, and Capital Flows Study
okr.docurl
http://documents.worldbank.org/curated/en/226941591075288820/Pakistan-Economic-Policy-for-Competitiveness-Import-Duties-and-Performance-Some-Stylized-Facts-for-Pakistan
okr.googlescholar.linkpresent
yes
okr.identifier.externaldocumentum
090224b0879ba4bf_1_0
okr.identifier.internaldocumentum
32082065
okr.identifier.report
AUS0001593
okr.imported
true
en
okr.language.supported
en
okr.pdfurl
http://documents.worldbank.org/curated/en/226941591075288820/pdf/Pakistan-Economic-Policy-for-Competitiveness-Import-Duties-and-Performance-Some-Stylized-Facts-for-Pakistan.pdf
en
okr.region.administrative
South Asia
okr.region.country
Pakistan
okr.topic
Transport :: Transport and Trade Logistics
okr.topic
International Economics and Trade :: Customs and Trade
okr.topic
International Economics and Trade :: Export Competitiveness
okr.topic
International Economics and Trade :: Trade Liberalization
okr.topic
International Economics and Trade :: Trade Policy
okr.topic
International Economics and Trade :: Trade and Regional Integration
okr.unit
Macroeconomics, Trade and Investment Global Practice

Show simple item record



This item appears in the following Collection(s)