ISLAMABAD – Pakistan has approved a major reduction in import tariffs as part of its broader strategy to revive the economy, enhance exports, and attract foreign investment.
The decision, announced by Prime Minister Shehbaz Sharif, marks a shift from restrictive import controls to policies that support industrial growth. With inflation easing and macroeconomic indicators improving, the government aims to boost productivity by phasing out additional customs and regulatory duties over the next four to five years.
Pakistani exports, particularly in textiles, engineering, and pharmaceuticals, rely heavily on imported inputs, making lower import duties crucial for global competitiveness. Under the new policy, customs duties will be capped at 15%, compared to current rates that sometimes exceed 100%, while tariff slabs will be limited to four categories to simplify regulations.
Sharif has also ordered the formation of an implementation committee to oversee the rollout of these reforms, reinforcing the government’s commitment to economic stability and export-led growth.
This initiative is expected to curb unemployment, further reduce inflation, and create dignified employment opportunities, particularly for educated youth.
