Could 20, 2025 (MLN): The federal authorities is about to launch the primary part of its tariff discount initiative within the fiscal yr 2025–26 funds, as outlined within the Nationwide Tariff Coverage 2025–30.

Based on a round issued by the Engineering Improvement Board (EDB) on Could 17, 2025, this coverage goals to regularly cut back import duties over the following 5 years to advertise export-driven financial development.

Underneath the reform plan, the variety of customs obligation slabs might be streamlined from 5 to 4, with a most obligation cap of 15% by the tip of the coverage interval, down from the present high charge of 20%.

The up to date obligation construction will embody charges of 0%, 5%, 10%, and 15%, as per the press launch issued right now.

The round notes that, in accordance with the Prime Minister’s imaginative and prescient for export-oriented improvement, a number of main adjustments might be launched beneath the brand new coverage.

These embody a four-year phase-out of the Further Customs Responsibility (ACD), a five-year elimination of Regulatory Responsibility (RD), the gradual discontinuation of the Fifth Schedule by 2030, and the simplification of the obligation slab system.

At the moment, Pakistan operates with 5 customs obligation tiers: 0%, 3%, 11%, 16%, and 20%.

The upcoming adjustments will see the three% slab eliminated, with related objects shifted to both 0% or 5%.

The 11% and 16% slabs might be adjusted to 10% and 15%, respectively, whereas the 20% slab might be regularly eradicated all through the reform interval.

The Fifth Schedule of the Customs Act—which regulates imports of capital items and uncooked supplies for business—might be utterly phased out over the following 5 years.

The EDB has requested suggestions from all stakeholders on the proposed coverage’s influence on industrial improvement, product competitiveness, export potential, and total financial efficiency.

Prime Minister Shehbaz Sharif, whereas introducing the coverage framework throughout a high-level assembly final week, referred to as it a pivotal transfer for Pakistan’s financial future.

He emphasised that the reforms intention to ascertain a clear, predictable, and investment-friendly tariff regime.

This initiative is a part of a broader authorities technique to stimulate financial revival by way of enhanced industrial effectivity, elevated funding, and deeper integration of native industries into world worth chains.

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Posted on: 2025-05-20T16:40:34+05:00