Prime Minister Shehbaz Sharif on Friday introduced sweeping reforms to Pakistan’s tariff structure, announcing that customs duties will be capped at 15%, while additional and regulatory duties will be gradually eliminated over the next four to five years.
Chairing a key session on the National Tariff Policy, the prime minister endorsed a plan aimed at simplifying the country’s import regime and positioning Pakistan for export-led economic growth.
“This move is being considered a major milestone toward economic improvement that will enable export-led growth. This decision is expected not only to help control unemployment but also to keep inflation in check. Besides, it will also encourage international investment, help create new job opportunities,” a statement from the Prime Minister’s Office said.
Currently, Additional Customs Duty ranges from 2% to 7%, while Regulatory Duty spans 5% to 90% on certain items. Both will be phased out incrementally under the new framework. The standard Customs Duty, which in some cases exceeds 100%, will now be capped at 15%.
The reform also includes a reduction in the number of duty slabs to just four, aimed at streamlining import processes and reducing compliance hurdles for businesses.