ISLAMABAD: The government is set to unveil wide-ranging trade reforms in the FY2026-27 budget, targeting the removal of 2,662 non-tariff barriers (NTBs) and a reduction in import duties to stimulate international trade.
Official documents indicate that the reforms will cover 76 Harmonized System (HS) codes across key sectors, including textiles, leather, pharmaceuticals, automobiles and chemicals. Authorities have also assured the International Monetary Fund of their commitment to eliminating these barriers as part of broader economic restructuring.
Under the plan, restrictions affecting the identified HS codes will be removed by June 2026, with the remaining NTBs to be phased out by November 2026. Tariff reductions will be introduced through the Finance Bill under the National Tariff Policy (2025-30), continuing the government’s ongoing effort to lower trade duties.
Officials say the measures aim to reduce import costs, improve competitiveness of domestic industries and create a more open, transparent market environment. The reforms are also expected to attract investment, boost exports and position Pakistan as a regional trade hub.
A parallel strategy to address NTBs has identified the most distortive measures for priority removal, with final recommendations to be presented to the Cabinet Committee on Regulatory Reform.
Economic experts have welcomed the initiative as a positive step for businesses, while stressing the need for consistent implementation and support for local industries to ensure long-term benefits.
Policymakers say the reforms are designed to increase exports while simultaneously reducing unnecessary protectionist measures thereby creating a more open and transparent market environment.
They expressed the optimism that effective implementation of the policy would attract investment and accelerate industrial growth. Officials also noted that the measures under the NTP 2025-30 are aligned with global trade trends and aim to position Pakistan as a strong regional trade hub. The phased approach is also expected to lower the cost of doing business and improve trade facilitation.
