MULTAN: In a significant move to bolster regional trade, Pakistan has announced the exemption of customs duties on 261 tariff lines for imports from the D-8 countries, effective from January 1, 2025.
This initiative aligns with Pakistan’s commitment to the D-8 Preferential Trade Agreement (PTA) and is aimed at enhancing economic cooperation with member states, including Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, and Turkiye.
The Federal Board of Revenue (FBR) issued Statutory Regulatory Order (SRO) 2075, detailing the phased reduction of customs duties under the D-8 PTA. The tariff cuts will be gradual, with the final duty rates to be fully implemented by 2028. This long-term approach reflects Pakistan’s strategy to support regional integration while ensuring domestic industries are not unduly impacted during the transition.
The FBR clarified that imports under the D-8 PTA must adhere to the Rules of Origin, 2024, as outlined in the Import Policy Order, 2020. This ensures that only goods originating from D-8 member countries and meeting the specified criteria will benefit from the preferential tariff rates.
Under the provisions of Section 18C and Section 19 of the Customs Act, 1969, Pakistan has exercised its authority to implement the customs duty exemption, offering reduced rates on imports that comply with the D-8 PTA. In cases where the agreed customs duty rates under the PTA are lower than existing rates, the preferential lower rates will take precedence, further incentivizing intra-regional trade.
Economic analysts view the move as a strategic effort to stimulate trade among D-8 countries, driving down the cost of imports and promoting closer economic ties. By reducing trade barriers, Pakistan aims to create a more competitive market environment, which is expected to enhance the availability of goods and improve market efficiency.
“This exemption will provide a much-needed boost to the import sector, lowering the cost of goods entering the country from D-8 nations. The move will also open up new avenues for economic collaboration, benefiting both Pakistani businesses and regional partners,” said an economic analyst in Islamabad.
Furthermore, this policy adjustment underscores Pakistan’s active participation in regional trade agreements, signaling its intent to further integrate with neighboring economies and foster mutual growth among D-8 member states.
The phased reduction of duties will be implemented over the next three years, providing time for businesses to adjust and align with the evolving trade landscape. This careful approach ensures that Pakistan remains compliant with international trade agreements while safeguarding the interests of domestic industries.
With regional trade becoming increasingly crucial for economic growth, Pakistan’s commitment to the D-8 PTA represents a significant step towards a more interconnected and mutually beneficial economic framework in the coming years.
