Despite following the policy of protectionism, Pakistan fares well in terms of tariff rates compared to India and Bangladesh, said Customs department sources, as the average Most Favoured Nation (MFN) rate of Pakistan was 12.1 percent against 17.1 percent and 14 percent for India and Bangladesh respectively, said sources from Pakistan Customs.

However, they added, the MFN rates of China (9.8 percent), Sri Lanka (9.3 percent), Indonesia (8.1 percent), and Malaysia (5.6 percent) are much below than Pakistan. Similarly, according to the sources, Pakistan looks better than India and Bangladesh in terms of average MFN rates with respect to product groups in the region.

The textile sector enjoys more protection in India (20.7 percent) and Bangladesh (19.5 percent) compared to Pakistan (15.3 percent), they said, adding that the MFN rate for machinery upon which entire edifice of industrial development is built is lower in Pakistan compared to Bangladesh and India.

It may be noted that Pakistan has liberalized comparatively faster than India and Bangladesh since 2000 taking the average MFN rate as the proxy variable for liberalization, as the average MFN rates for Pakistan, India and Bangladesh were respectively 25.16 percent, 35.56 percent, and 21.64 percent in the year 2000, which in the year 2018 respectively stand at 12.1 percent, 17.1 percent and 14 percent. It simply suggests that Pakistan has liberalized more compared to India and Bangladesh in the last two decades.