ISLAMABAD – The government has decided to significantly reduce import duties in a bid to boost economic activity.
Under the five-year National Tariff Policy 2025–30, customs, regulatory, and additional duties will be reduced in phases. The core objective of the policy is to bring the average tariff down from 20.19% to 9.70%. However, the move is expected to result in a revenue shortfall of Rs143 billion.
Sources said that, according to parliamentary circles, the decision will enhance market competition and lower import costs. Officials added that over the next five years, customs duties are proposed to be capped at a maximum of 15%. Similarly, additional customs duties will be reduced from 6% to zero in a phased manner.
Furthermore, the maximum rate of regulatory duty will be limited to 20%, with plans for its gradual elimination. Sources noted that the target is to reduce the average import duty rate to 16.56% within five years. The Engineering Development Board has also recommended a uniform tariff for locally manufactured and imported vehicles.
The new policy proposes equal opportunities for domestic industries and the import market. These reforms are seen as a key step toward aligning the tariff structure with global standards, aiming to modernize local industries and ensure transparency in the trade system.
