Import related Statutory Regulatory Orders (SROs) issued by the Federal Board of Revenue decrease the efficiency of the markets by tending the market players to play in line with the SROs issued instead of the actual market prices. The ability of FBR to make changes in the custom tariff lines through SRO, empower them to deal with the vested interests of many entities. The beneficiaries of SROs are then enabled to ‘extract rents’ and earn extra large profits without having need to produce and compete effectively in the market. Moreover, in such an environment, investors are reluctant to respond well hence the whole market is then shifted to the chosen ones.

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To read the full report, click here: How intimately SROs and Development in the textile sector 

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