ISLAMABAD: In a key step toward economic restructuring, Prime Minister Shehbaz Sharif has confirmed that custom duty is capped at 15% as part of newly approved tariff reforms. The announcement was made during a high-level meeting on the National Tariff Policy, which also signaled the gradual removal of additional and regulatory duties over the next four to five years.
The Prime Minister’s Office stated that the tariff reforms are intended to reduce inflation, attract foreign investment, and create employment opportunities. The new policy is being promoted as a transformative initiative to foster export-led growth and simplify trade procedures.
“This is a significant economic milestone that will help stabilize inflation and encourage international investors,” read the official press release. “It is also designed to create new job opportunities and promote sustainable growth.”
At present, additional custom duty rates vary from 2% to 7%, while regulatory duties can reach up to 90%. In some instances, overall custom duty exceeds 100%, prompting the government to place a firm ceiling at 15%. Over time, these additional and regulatory levies will be gradually eliminated.
Another critical aspect of the reforms includes reducing the number of tariff slabs to just four, aimed at streamlining the import process and improving business compliance.
“This reform package is part of a broader economic agenda built on input from national and global experts,” said Shehbaz Sharif. “Our objective is to enhance competitiveness in the Pakistani industry, improve the ease of doing business, and control inflation.”
Officials anticipate the move will support local manufacturers by making the import of raw materials and machinery more affordable. They also expect it will help shrink the current account deficit and boost legal trade, thereby increasing government revenue.
To ensure a smooth transition, an implementation committee has been formed to oversee the phased rollout of the revised tariff regime.
The meeting was attended by Federal Ministers Jam Kamal Khan, Ahad Cheema, Muhammad Aurangzeb, Ali Pervaiz Malik, Special Assistant to the PM Haroon Akhtar, and top officials from key economic departments.
With custom duty now capped at 15%, Pakistan’s new tariff structure marks a strategic pivot aimed at long-term economic sustainability.