The federal government has decided to drastically reduce import duties under its proposed National Tariff Policy 2025–30 to lower trade costs, boost economic activity and make Pakistan’s market more competitive.
The five-year policy proposes phased cuts to customs duties, regulatory duties and additional customs duties, with the overall average tariff targeted to fall from 20.19 percent to 9.70 percent.
The reforms are expected to reduce government revenue by an estimated Rs. 143 billion, but lower tariffs will encourage trade, reduce import costs and improve competition across multiple sectors.
Under the proposal, the maximum customs duty would be capped at 15 percent within five years. Additional customs duties, currently reaching 6 percent, would be gradually eliminated, while regulatory duties would be limited to 20 percent before being phased out.
The government also aims to reduce the average import duty rate to 16.56 percent during the implementation period.
The National Tariff Policy is expected to be implemented gradually over the next five years if approved.
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