Prime Minister Announces Major Cut in Import Duties to Boost Exports and Investment

Islamabad: Prime Minister Muhammad Shehbaz Sharif has taken a significant step to boost exports and attract investment by approving a major reduction in import duties.
The decision was made during a high-level meeting on the National Tariff Policy held at the Prime Minister’s Office. The Prime Minister approved a gradual yet substantial reduction in import tariffs, marking what is being described as a milestone in achieving economic improvement through export-led growth.
This move is expected to not only help control inflation but also address unemployment. By promoting international investment, the initiative aims to create new employment opportunities, particularly for educated youth, and support the government’s commitment to economic stability and dignified employment for the masses.
Prime Minister Sharif reiterated his commitment to economic reforms, employment generation, and sustainable reduction in inflation. A comprehensive economic reform plan has already been developed after extensive consultations with national and international economic experts.
As part of the new policy, the Prime Minister directed that Additional Customs Duty—currently ranging from 2% to 7%—and Regulatory Duty—currently between 5% and 90%—should be completely eliminated within the next four to five years.
He also approved a cap on Customs Duty, limiting it to a maximum of 15%, compared to current rates that sometimes exceed 100%. Furthermore, the tariff structure has been simplified to four slabs, reducing legal complexities and providing equal opportunities across various industries.
This reform will open the economy to foreign investment, while also making it easier and cheaper for local industries to import raw materials, intermediate goods, and capital equipment. Enhanced competitiveness will allow domestic industries to become more efficient and expand export earnings, ultimately helping to control inflation and stabilize the national currency.
The Prime Minister emphasized that this reduction in tariffs would help stabilize the current account deficit and could potentially increase revenue collection from Customs Duties. He also announced the formation of an implementation committee to ensure the smooth execution of the new tariff policy.
The meeting was attended by Federal Minister for Commerce Jam Kamal Khan, Federal Minister for Economic Affairs Ahsan Iqbal, Federal Minister for Finance Muhammad Aurangzeb, Federal Minister for Petroleum Ali Pervaiz Malik, Special Assistant to the Prime Minister Haroon Akhtar, and other senior officials.