The government has raised additional customs duties on imported tyres and motorcycle parts manufactured locally to protect domestic manufacturers, while approving financing support for small businesses and farmers.
The Economic Coordination Committee (ECC) of the cabinet approved an increase in additional customs duty on radial tyres from 4 percent to 11 percent and on motorcycle parts from 11 percent to 31 percent. Finance Minister Muhammad Aurangzeb chaired the meeting on Thursday.
The committee said the duty increases were intended to promote domestic manufacturing. The decisions apply to tyres and motorcycle parts produced locally, according to an official statement.
The ECC also approved a State Bank of Pakistan financing framework to expand access to credit for small and medium sized enterprises, small farmers and medium sized industries through eligible microfinance and nonbank financial institutions.
Under the framework, first loss coverage will be provided for up to 20 percent of loans to small and medium sized enterprises and 10 percent each for small farmers and medium sized industries. The arrangement aims to broaden access to financing through wholesale and agency arrangements involving Agency Financial Institutions.
The committee also approved an amendment to the Credit Guarantee Trust Fund to expand the use of an existing credit guarantee facility for affordable housing finance. The fund was originally established for the prime minister’s Mera Pakistan Mera Ghar scheme.
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