ISLAMABAD: Prime Minister Shehbaz Sharif on Friday unveiled major tariff reforms, announcing that the government will cap customs duty at a maximum of 15% and gradually phase out additional customs and regulatory duties over the next four to five years.
The prime minister chaired a meeting on the National Tariff Policy and took a historic step by approving a gradual but significant reduction in import tariffs.
“This move is being considered a major milestone toward economic improvement that will enable export-led growth. This decision is expected not only to help control unemployment but also to keep inflation in check. Besides, it will also encourage international investment, help create new job opportunities,” according to a PM Office press release.
The prime minister directed officials to eliminate the Additional Customs Duty (currently ranging from 2% to 7%) and Regulatory Duty (currently varying from 5% to 90%) over the next four to five years.
The government will cap Customs Duty at a maximum of 15%, as some items currently face rates exceeding 100%. Officials have also reduced the number of duty slabs to four to simplify import-related legal complexities and ensure a level playing field for various industries.
Prime Minister Shehbaz reiterated his government’s commitment to building a strong economy, creating employment opportunities, and eliminating inflation.
He said the government formulated a comprehensive plan for fundamental economic reforms after holding thorough consultations with national and international economic experts, and the decision to reduce customs duties was part of those reforms.
The prime minister’s “historic decision” is expected to open the economy to foreign investment and ensure easy, affordable access for domestic industries to raw materials, intermediate goods, and capital equipment. Increased competitiveness is also expected to help local industries become more efficient and competitive, contributing to inflation control and national currency stabilization.
The prime minister stated that reducing tariffs would help stabilize the current account deficit and boost revenue collection. He also formed an implementation committee to oversee the process.
Federal Minister Jam Kamal Khan, Ahad Cheema, Muhammad Aurangzeb, Ali Pervaiz Malik, Special Assistant to the PM Haroon Akhtar, and senior officials from relevant departments attended the meeting.
[embedpost slug="pm-shehbaz-says-pakistan-shot-down-six-indian-jets/"]
