Pakistan has decided to reduce import duties and eliminate thousands of non-tariff barriers as part of sweeping trade reforms aimed at boosting economic activity and global competitiveness.
According to official documents, the government plans to introduce these measures in the upcoming FY2026-27 budget, targeting the removal of 2,662 non-tariff barriers (NTBs) that currently restrict imports and exports.
Key Developments
- Import duties to be reduced to encourage trade and lower costs
- 2,662 non-tariff barriers identified for removal
- Reforms to cover 76 HS codes across key sectors including textiles, pharmaceuticals, automobiles, and chemicals
- Aim to improve trade flows and align with global standards
Officials said the reforms are part of Pakistan’s commitments under its agreement with the International Monetary Fund (IMF), with initial steps expected to begin as early as June 2026.
The move is expected to make imports easier by removing restrictions on sectors such as mobile phones, cars, agriculture, and medicines, while also reducing the cost of doing business.
Experts believe the tariff overhaul could boost exports, improve market efficiency, and enhance competition, marking a significant shift in Pakistan’s trade policy.
The decision signals a major policy shift as Islamabad moves toward a more open and streamlined trade regime amid ongoing economic reforms.