Pakistan to Gradually Reduce Tariffs Across Key Sectors to Boost Exports, Says Prime Minister

Islamabad: Prime Minister Muhammad Shehbaz Sharif chaired two high-level meetings on Wednesday to review Pakistan’s overall economic growth, the implementation of the National Tariff Policy 2025-30, and ongoing reforms within the Federal Board of Revenue (FBR).

During the meeting on the National Tariff Policy, the Prime Minister said that achieving export-led economic growth remains one of the government’s top priorities. He emphasized that an active and transparent National Tariff Commission is essential for promoting industry, trade, and investment, and directed the commission to enhance its performance to better facilitate investors and industrialists.

Sharif also instructed officials to adopt international best practices and modern technologies, particularly information technology and artificial intelligence, to modernize the National Tariff Commission.

Officials briefed the meeting that under the National Tariff Policy 2025-30, tariffs on various sectors will be reduced in phases to support export-oriented economic growth. Proposals include eliminating duties on reefer containers and semi-trailers to strengthen the logistics sector, while customs duties on specialized vehicles and machinery are being reduced to support the construction industry.

The briefing further revealed that customs duties on pharmaceutical raw materials, especially those used in the production of cancer medicines, will be abolished to facilitate the pharmaceutical sector.

In a separate meeting on FBR reforms, the Prime Minister reviewed measures aimed at increasing tax revenues, improving transparency, and introducing a faceless tax administration system. A comprehensive plan was presented to make Inland Revenue operations more efficient, transparent, and automated.

The Prime Minister said that the effective use of modern technology would help establish an automated, modern, and efficient tax management system, calling it a major milestone in the government’s reform agenda. He stressed the need to minimize human intervention and discretionary powers in tax collection processes.

According to the briefing, the proposed automated tax system will be capable of identifying underreported income and assets by utilizing data from property records, vehicle registrations, and banking transactions. Artificial intelligence and advanced technology will be employed to make the tax system more transparent and efficient.

The proposed reforms also include the establishment of a National Faceless Audit Wing, a National Assessment Wing, and a Field Operations Wing. The Prime Minister directed authorities to launch the pilot project of the automated income tax system in Islamabad.

The meeting also reviewed enforcement actions against illicit cigarettes. Officials informed participants that stronger enforcement measures and the cooperation of provincial governments are expected to generate an additional Rs40 billion in tax revenue from the tobacco sector during the current fiscal year.

The Prime Minister reaffirmed the government’s commitment to continuing FBR reforms, expanding the tax base, and promoting the documentation of the economy.