The government of Pakistan, under Prime Minister Shehbaz Sharif’s leadership, has decided to reduce import duties significantly as part of a broader strategy to attract foreign investment, promote exports, and stabilize the economy.
In a crucial meeting on the National Tariff Policy held on Friday, the government approved the phased elimination of additional customs duties (ACD) and regulatory duties (RD) over the next four to five years. This move will cut ACD, currently ranging from 2% to 7%, and RD, which ranges from 5% to 90%.
Furthermore, Prime Minister Shehbaz Sharif endorsed a proposal to cap customs duties (CD) at a maximum of 15%, a reduction from the current levels where some duties exceed 100%. Additionally, the government will simplify the tariff structure by reducing the number of CD slabs to four, aiming to ease the complexities involved in imports and ensuring a fair competitive environment across industries.
The move is seen as a key component of Pakistan’s economic recovery plan, aimed at curbing unemployment, controlling inflation, and encouraging export-led growth. According to the Prime Minister’s Office (PMO), this decision is expected to attract more foreign investments, generate new jobs, and provide local industries with easier access to raw materials and capital equipment.
PM Shehbaz emphasized that reducing tariffs would not only stabilize Pakistan’s current account deficit but also help generate higher revenue compared to the current customs duties collected. To ensure smooth implementation, an implementation committee has been formed, consisting of key ministers and senior officials.
The decision marks a significant step in Pakistan’s efforts to improve its economic situation and create a favorable environment for both domestic and international businesses.
