Prime Minister Shehbaz Sharif has approved a major tariff reform, capping customs duty at a maximum of 15% and phasing out additional and regulatory duties over the next four to five years. The announcement was made following a high-level meeting on the National Tariff Policy held on Friday.
The reform aims to make imports more affordable, especially for raw materials and machinery, while encouraging export-led growth. According to the Prime Minister’s Office, the policy is also expected to help reduce inflation, attract foreign investment, and generate new employment opportunities.
Currently, Pakistan imposes additional customs duties ranging from 2% to 7% and regulatory duties from 5% up to 90%. In some cases, total duties exceed 100%. Under the new policy, these extra charges will be gradually eliminated, and customs duty will be capped at 15% to simplify trade and improve compliance.
Moreover, the number of tariff slabs will be reduced to four. This simplification is intended to make the import process easier for businesses and improve the overall ease of doing business in the country. Officials say the move will also reduce the current account deficit and encourage legal imports, helping the government increase revenue collection.
“This reform is a key step toward making Pakistani industries more competitive,” said Prime Minister Shehbaz. “It reflects our broader economic vision developed through consultation with national and international experts,” he added, emphasizing the need to boost exports and improve inflation control.
To ensure a smooth rollout, an implementation committee has been formed. The meeting was attended by federal ministers including Jam Kamal Khan, Muhammad Aurangzeb, and Ahad Cheema, along with Special Assistant to the PM Haroon Akhtar and other senior officials from related departments.