The striking feature of the policy is relaxation of import restriction on all but 25 items as against 131 in the 2003-06 policy. The restricted items included firearms, health and environment hazardous and those may hurt the religious sentiment of the people.

Announcing the import policy 2006-09 at a press conference in his office Finance and Commerce Adviser Mirza Azizul Islam expressed the hope that it will help industrialisation, create employment and thus reduce poverty. The policy came into effect yesterday.

"The policy has been simplified further in the changed scenario of globalisation under WTO and free market economy," said the adviser.

Ealier, the Council of Advisers at a meeting with Chief Adviser Fakhruddin Ahmed in the chair approved the import policy after a committee on economic affairs reviewed it.

The new policy reduced control over imports at limited level, amended few provisions of the previous policy and introduced some new provisions considering the need of time.

Explaining the objective of the policy the adviser said it will help raise production and make exports competitive. It will ensure import and distribution of quality items.

Replying to a question he said, impact of the policy cannot be ascertained immediately. It will take some time.

Aziz said the concept of imposing high import tariff to protect domestic industry is no more effective in the present day world. "It only makes local industry inefficient," he said stressing the need for improving efficiency of the domestic industry.

He said import duty on finished products remained in the highest slab of the duty structure.

Asked how much the policy would address the main focus of poverty reduction the adviser expressed the hope that prices of essentials will come down with reduction of duty. That will lessen the burden on the poor.

He said the government is closely monitoring the market and will take steps whenever necessary to face the situation. "We'll consider whether we can address the situation by changing the duty structure - be it through fiscal measure in the budget or by issuing SROs (Statutory Regulatory Orders)."