ISLAMABAD, Pakistan – May 20, 2025 – Pakistan is planning a significant reduction in import duties over the next five years as part of its National Tariff Policy 2025-30. This strategic move aims to boost industrial growth and exports by fostering a more competitive trade regime.
Under the plan, which is set to be initiated in the fiscal budget for 2025-26, the country will streamline its customs duty structure. The number of customs duty slabs will be trimmed from five to four, and the maximum duty rate will be gradually lowered from the current 20% to 15%.
Specifically, the existing 3% slab will be eliminated, with affected tariff lines being reassigned to either a zero or 5% duty rate. Concurrently, the 11% and 16% slabs will be revised downwards to 10% and 15%, respectively.
According to a statement released by the Engineering Development Board on Saturday, Additional Customs Duties (ACD) will be phased out over a period of four years. Furthermore, Regulatory Duties (RD) and the Fifth Schedule of the Customs Act—which covers capital goods and industrial raw materials—are slated for complete removal within five years.
The policy overhaul is in direct alignment with Prime Minister Shehbaz Sharif’s directive to pursue export-led growth. This objective will be achieved by simplifying the tariff structure and eliminating distortions that currently hinder industrial competitiveness, as outlined in the statement.
Industry stakeholders have been invited to provide their feedback on the proposed reforms and to assess their potential impact on economic expansion and export performance. One of two online consultations, chaired by top officials from the Ministry of Industries and Production, is scheduled for today (May 20).
