Tariff Reform Plan
ISLAMABAD: Prime Minister Shehbaz Sharif on Friday announced a sweeping overhaul of Pakistan’s tariff structure, unveiling a five-year reform plan aimed at boosting economic growth, attracting foreign investment, and making Pakistani industries more competitive.
In a high-level meeting on the National Tariff Policy, the prime minister approved a historic reduction in import duties, setting a maximum cap of 15% on Customs Duty and ordering the gradual elimination of Additional Customs Duty and Regulatory Duty.
The new policy, which is to be phased in over the next four to five years, represents a significant shift toward an open and export-oriented economy.
Currently, Regulatory Duty ranges between 5% and 90%, and Additional Customs Duty lies between 2% and 7%. These will now be systematically phased out, providing much-needed relief to importers and domestic industries reliant on foreign raw materials and machinery.
The prime minister described the reforms as a “milestone in Pakistan’s economic policy,” noting that they are expected to play a crucial role in promoting export-led growth. “This decision will not only reduce inflation and boost employment opportunities but also attract international investors by simplifying the trade regime and lowering the cost of doing business,” read a statement issued by the Prime Minister’s Office.
A major component of the reform includes simplifying the tariff structure itself. The number of existing duty slabs has been reduced to just four, with the aim of eliminating legal complexities and providing a level playing field for all industrial sectors. These changes are also expected to facilitate increased revenue collection and help stabilize the current account deficit.
Prime Minister Shehbaz emphasized that the reforms are part of a broader economic strategy developed after extensive consultations with both national and international experts. “This is a bold and necessary step toward building a stable, growth-driven economy,” he said.
He also formed an implementation committee to ensure the smooth execution of the reform agenda. The meeting was attended by several senior government officials, including Finance Minister Muhammad Aurangzeb, Planning Minister Ahad Cheema, and Special Assistant to the PM Haroon Akhtar, among others.
