Nominal and Effective Rates of Protection by Industry in Pakistan: A Tariff Based Analysis

The study calculates nominal and effective rates of protection their association with major characteristics industries—labour intensity, export orientation revealed comparative advantage. results indicate that as well rate has declined between two benchmark years—1990 2002, but vegetable oil, motor vehicles, a sector producing intermediate good ‘other manufacturing’ remains highly protected. Overall reveal manufacturing import competing sectors enjoy higher through trade policy—tariff while negative for majority agriculture services show disadvantage position in the economy. clearly government priority over sectors. also is negatively associated industrial such labour orientation, advantage indicating needs less if it advantage—labour intensive produce exportable commodity. policy Pakistan shifts favours inputs 2002 from final goods 1990. There need to restructure tariff structure remove bias against Agriculture where unskilled engaged ask immediate action improve condition poor.