Prime Minister Shehbaz Sharif on Friday announced a significant overhaul of Pakistan’s tariff structure as part of broader economic reform efforts.
According to a statement issued by the Prime Minister’s Office (PMO), the government will gradually phase out Additional Customs Duty (ACD), currently ranging from 2% to 7%, and Regulatory Duty (RD), which varies between 5% and 90%, over the next four to five years.
In a major policy shift, the prime minister also approved a proposal to cap Customs Duty (CD) at a maximum of 15%. Currently, CD rates can exceed 100% on certain items. The number of CD slabs has also been reduced to four, a move aimed at simplifying the import process, reducing legal complexities, and ensuring fair competition across industries.
These decisions were taken during a high-level meeting on the National Tariff Policy held at the Prime Minister’s Office.
Chairing the session, Prime Minister Shehbaz Sharif reiterated his administration’s commitment to achieving sustainable economic growth, generating employment, and tackling inflation comprehensively.
He said that a detailed economic reform plan has been prepared following extensive stakeholder consultations. The approved tariff reforms are a key component of the government’s broader economic recovery strategy.
