This has been partly because of its nascent nature and partly to allow its allied vendor industry to grow.
However, the tariff peak problem emerging from this rate structure will have to be addressed on priority basis for two reasons.
Firstly, high protective rates generate anti-export bias, as factors of production move from low tariff to high tariff industries thereby introducing further inefficiencies in the system, and secondly, it constitutes transfer of income from consumers to producers, without raising the total national income, the quarterly report added.