The Government of Pakistan has announced a major plan to reduce import duties under the proposed National Tariff Policy 2025–30. The aim is to lower trade costs and improve economic competitiveness.
The Government says the reforms will help make the local market more open. It is also expected to support business activity and encourage imports of raw materials at lower prices.
Under the proposed plan, the Government will reduce customs duties, regulatory duties, and additional customs duties over a five-year period. The average tariff rate is expected to fall from 20.19 percent to 9.70 percent.
Officials say the new policy is designed to simplify the tariff structure. It will also reduce protection for certain sectors while promoting fair competition in the market.
The Government has also proposed a cap on maximum customs duty. It will be limited to 15 percent within five years under the new framework.
In addition, additional customs duties will be gradually removed. These currently reach up to 6 percent and will be phased out step by step.
Regulatory duties will also be adjusted. The Government plans to limit them to a maximum of 20 percent before fully phasing them out in the long run.
According to estimates, the reforms may reduce Government revenue by around Rs. 143 billion. However, officials believe that increased trade activity and economic expansion may offset part of the loss over time.
The average import duty rate is also expected to drop to 16.56 percent during the implementation phase. This is part of the broader effort to modernize trade policy.
The Government has stated that the National Tariff Policy 2025–30 will be implemented gradually after approval. The step-by-step approach is aimed at ensuring stability in the economy.
Experts say lower tariffs may help businesses reduce production costs. It could also improve access to cheaper imported materials for industries.
However, some analysts believe the Government will need to carefully manage revenue pressures during the transition period.
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If approved, the policy will mark one of the most significant tariff reforms in recent years. It is expected to reshape Pakistan’s trade environment and strengthen long-term economic growth.
