ISLAMABAD, May 16 (Alliance News): Prime Minister Shehbaz Sharif on Friday announced a landmark decision to cap customs duty at 15% and gradually eliminate additional customs and regulatory duties within the next four to five years as part of wide-ranging tariff reforms aimed at stimulating export-led growth and attracting foreign investment.
Chairing a high-level meeting on the National Tariff Policy, the prime minister approved a phased reduction in import tariffs, calling it a “historic step” towards economic reform and industrial revival.
According to a statement issued by the Prime Minister’s Office, the reforms are designed to support job creation, curb inflation, and ensure greater competitiveness in local industries.
Under the new policy, Additional Customs Duty—currently ranging from 2% to 7%—and Regulatory Duty—ranging from 5% to as high as 90%—will be completely removed within the next five years.
Customs duty, which currently exceeds 100% on some items, will now be capped at a maximum of 15%. Additionally, the number of duty slabs has been reduced to four to simplify the tariff structure and remove legal complications.
The prime minister emphasized that the reforms were developed in consultation with both national and international economic experts and are part of a broader roadmap for stabilizing the national economy.
He said the changes will ensure better access to raw materials and machinery for domestic industries, making them more efficient and globally competitive.
Shehbaz Sharif expressed confidence that the tariff cuts would help control inflation, stabilize the national currency, improve the current account balance, and boost revenue collection through enhanced economic activity.
An implementation committee has also been formed to oversee the execution of these reforms.
The meeting was attended by federal ministers Jam Kamal Khan, Ahad Cheema, Muhammad Aurangzeb, Ali Pervaiz Malik, Special Assistant to the PM Haroon Akhtar, and senior officials from relevant departments.
