ISLAMABAD: In a bold move aimed at revitalizing Pakistan’s struggling economy, Prime Minister Shehbaz Sharif on Friday unveiled a sweeping new tariff policy, capping customs duties at 15 percent and announcing the phase-out of additional and regulatory duties over the next four to five years.
The announcement, made during a high-level meeting on the country’s National Tariff Policy chaired by the prime minister, is set to reshape the country’s trade landscape.
According to a statement from the Prime Minister’s Office, currently – for some items – the customs duties exceed 100 per cent, but under the new plan, those rates will be drastically reduced, and the complicated web of additional customs duty (2-7 per cent) and regulatory duty (5-90 per cent) will be dismantled.
“This is a turning point,” said Sharif, describing the reforms as a crucial step in driving economic growth through a smarter, more equitable trade policy.
Sharif emphasised that the new tariff policy is designed to boost exports, attract foreign investment, and create jobs. The initiative, he explained, is part of a broader strategy to stabilise the economy, tame inflation, and equip local industries to compete on the global stage.
As part of the overhaul, the number of customs duty slabs will be slashed to just four, a move aimed at reducing bureaucratic hurdles for importers and creating a fairer business environment across sectors.
The reforms are also expected to ease access to raw materials and capital equipment for manufacturers, helping to improve efficiency and reduce consumer prices. In turn, this could stabilise the current account balance and strengthen the Pakistani rupee.
An implementation committee has been established to oversee the phased rollout of the reforms. Sharif stressed that economic recovery remains his government’s top priority.
Among those in attendance were Federal Minister for Commerce Jam Kamal Khan, Minister for Economic Affairs AhadCheema, Finance Minister Muhammad Aurangzeb, Petroleum Minister Ali Pervaiz Malik, the special assistant to the prime minister on industries and production Haroon Akhtar, and senior officials from relevant departments.
Copyright Business Recorder, 2025
