Government Announces Major Tariff Reforms to Boost EconomyCustoms duty capped at 15%; additional and regulatory duties to be phased out
ISLAMABAD: Prime Minister Shehbaz Sharif on Friday announced sweeping tariff reforms, including a cap on customs duties at 15% and a phased elimination of additional and regulatory duties over the next four to five years.
Chairing a meeting on the National Tariff Policy, the prime minister approved a strategic reduction in import tariffs aimed at driving export-led economic growth.
According to a statement from the Prime Minister’s Office, the reforms are seen as a significant step toward stabilizing the economy, reducing unemployment, curbing inflation, and attracting foreign investment. The changes are also expected to generate new employment opportunities.
The plan includes the complete removal of Additional Customs Duty (currently 2% to 7%) and Regulatory Duty (ranging from 5% to 90%) within a four- to five-year timeline. Additionally, Customs Duty will be capped at a maximum of 15%, down from rates that currently exceed 100% on certain items. The number of duty slabs will also be reduced to four to simplify the legal framework for imports and support fair competition across industries.
Prime Minister Shehbaz reaffirmed his government’s commitment to economic reform, job creation, and inflation control. He stated that the customs duty reforms were part of a broader strategy developed after consultations with national and international economic experts.
He described the reforms as a “historic decision” that will open Pakistan’s economy to greater international investment, ensure cost-effective access to raw materials and equipment for local industries, and improve industrial competitiveness. These steps are expected to help stabilize the national currency and control inflation.
The reforms are also aimed at narrowing the current account deficit and improving revenue collection. An implementation committee has been formed to oversee the rollout of the changes.
The meeting was attended by federal ministers Jam Kamal Khan, Ahad Cheema, Muhammad Aurangzeb, and Ali Pervaiz Malik, along with Special Assistant to the PM Haroon Akhtar and senior officials from relevant departments.
