Monday, October 19 2026

Customs duty is not the barrier, GST is
The National Tariff Policy 2025-30 has remained in the news for the right reasons recently, and it is time to offer a provisional assessment in the light of recent data. The good news first: the policy is working. One of the underlying objectives of the policy was to stop treating customs tariff as a source of revenue and start treating it as a tool of industrial policy – to provide signals to industry and consumers. One year of experience indicates that the policy is succeeding, as the contribution of import-based revenue has come down from above 50% of overall tax revenue to less than 40%. This has happened despite an increase in import volume and customs revenue, while overall tariffs have gone down – exactly as the research had predicted.
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Was Pakistan ever an open economy?
Pakistan's National Tariff Policy 2025-30 is now in its second year of implementation. Yet questions persist about whether tariff reforms were necessary, whether the underlying data were reliable, and whether reducing import duties will benefit the economy. These are legitimate questions. But before judging the reforms, we must address a more fundamental issue: was Pakistan genuinely an open economy, or had decades of protectionism weakened its competitiveness and export potential? Much of the confusion appears to stem from a misinterpretation of the tariff indicators published by the World Trade Organisation (WTO). These indicators are useful, but they must be understood in context.
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Aurangzeb meets JP Morgan delegation
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb met with the JP Morgan delegation on the sidelines of the World Bank Group–IMF Annual Meetings 2026 in here to discuss Pakistan’s economic outlook, credit ratings and financing strategy. The Finance Minister highlighted progress under the IMF programme, stronger reserves and restored market access, reaffirming the government’s commitment to structural reforms. Both sides discussed Pakistan’s ambition to enter the BB rating category, with JP Morgan offering analytical support on key indicators and institutional improvements.
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Gold edges higher on softer oil; Fed rate outlook in focus
Gold prices edged higher on Monday as softer ‌oil prices offered support, while investors assessed the chances of a Federal Reserve interest rate hike later this year and looked for fresh signals on the US central bank’s policy trajectory. Spot gold ​rose 0.3% to $4,175.60 per ounce by 0259 GMT, while US gold futures for December ​delivery gained 0.4% to $4,196.40. “Gold is posting a modest rise to start ⁠the week. The metal is responding positively to the softer tone in oil prices ​from an inflation standpoint,” said Tim Waterer, chief market analyst at KCM Trade.
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Oil slips from 5-month high as Trump's Russia sanctions waiver may bring more supplies
Oil prices slipped from a five-month high on Monday as investors took profits after US President Donald Trump waived sanctions and tariffs on Russia that may lead to more Russian fuel exports. Brent crude futures fell $2.29, or 2.08%, to $107.57 a barrel by 0619 GMT after settling at its highest since May 19 on Friday. US West Texas Intermediate crude was at $99.46 a barrel, down $1.95, or 1.92%, after closing at its highest since September 17 on Friday.
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