Govt mulls import tariff cut under new policy

Pakistan plans to significantly reduce import duties over the next five years as part of its National Tariff Policy 2025-30 in an attempt to boost industrial growth and exports through a more competitive trade regime.

Under the plan, to be initiated in the fiscal budget for 2025-26, the country will trim the number of customs duty slabs from five to four, with the maximum rate gradually lowered to 15% from the current 20%.

The current 3% slab will be eliminated and reassigned to either zero or 5%, while the 11% and 16% slabs will be revised down to 10% and 15%, respectively.

According to a statement released by the Engineering Development Board on Saturday, additional customs duties (ACD) will be phased out over four years, while regulatory duties (RD) and the Fifth Schedule of the Customs Act — covering capital goods and industrial raw materials — will be removed within five years.

The policy overhaul aligns with Prime Minister Shehbaz Sharif’s directive to pursue export-led growth by simplifying the tariff structure and removing distortions that hamper industrial competitiveness, the statement read.

Industry stakeholders have been invited to provide feedback on the proposed reforms and assess their likely impact on economic expansion and export performance.

One of the two online consultations chaired by top officials from the Ministry of Industries and Production is scheduled for today (May 20).