Prime Minister Shehbaz Sharif revealed significant tariff reforms on Friday, setting a maximum customs duty limit of 15%.
During a meeting on the National Tariff Policy, PM Shehbaz stated that additional customs and regulatory duties would be phased out over the next four to five years.
“This move is 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,” the Prime Minister said.
He further emphasized that this initiative would encourage international investment and create new job opportunities.
The Prime Minister directed the elimination of Additional Customs Duty (currently ranging from 2% to 7%) and Regulatory Duty (currently varying from 5% to 90%) within the next four to five years.
According to a statement from the Prime Minister’s Office, customs duty will be capped at a maximum of 15%, as current rates exceed 100% for certain items.
The number of duty slabs has also been reduced to four to simplify legal complexities associated with imports and provide a level playing field for various industries.
PM Shehbaz reiterated his government’s commitment to developing a strong economy, creating employment opportunities, and curbing inflation.
He stated that a comprehensive plan for fundamental economic reforms had been formulated after extensive consultations with national and international economic experts, and the reduction of customs duties is a key component of these reforms.
The Prime Minister’s “historic decision” will open the economy to foreign investment and ensure domestic industries have easy and affordable access to raw materials, intermediate goods, and capital equipment, the statement read.
Furthermore, increased competitiveness will enable local industries to become more efficient and competitive, assisting in controlling inflation and stabilizing the national currency.
The Prime Minister maintained that the tariff reduction would help stabilize the current account deficit and contribute to higher revenue collection, and he also established an implementation committee on the matter.
