ISLAMABAD: Prime Minister Shehbaz Sharif on Friday approved tariff reforms, capping customs duty at a maximum of 15% and initiating the gradual elimination of additional and regulatory duties over the next four to five years.
The decision was taken during a high-level meeting on the National Tariff Policy, chaired by the premier, and is being hailed by the government as a key milestone toward export-led growth.
A statement from the Prime Minister’s Office said the reforms are aimed at reducing inflation, attracting international investment, and generating new employment opportunities.
“This move is being considered a major milestone toward economic improvement that will enable export-led growth. This decision is expected not only to help control unemployment but also to keep inflation in check. Besides, it will also encourage international investment, help create new job opportunities,” according to a PM Office press release.
Currently, additional customs duty ranges from 2% to 7% and regulatory duty varies from 5% to as high as 90%. Both will be phased out gradually. In some cases, customs duty exceeds 100%, prompting the government to cap the upper limit at 15%.
The number of tariff slabs will also be reduced to four in a bid to simplify import procedures and ease compliance for businesses.
“This is part of a broader economic reform agenda based on wide consultation with national and international experts,” Shehbaz said. “The goal is to make Pakistani industry more competitive, control inflation, and improve the ease of doing business.”
Officials believe the reforms will not only support domestic industries through cheaper imports of raw materials and machinery but will also help reduce the current account deficit and boost revenue collection by encouraging legal imports.
An implementation committee has been formed to oversee the gradual rollout of the new tariff regime.
The meeting was attended by federal ministers Jam Kamal Khan, Ahad Cheema, Muhammad Aurangzeb, Ali Pervaiz Malik, and Special Assistant to the PM Haroon Akhtar, along with senior officials from relevant departments.
