The Government of Pakistan has launched its National Tariff Policy (NTP) for 2025–30, aiming to drive export growth and reduce the trade deficit through a gradual and structured reduction in tariffs. Approved under the federal budget, the policy targets a 10–14% increase in exports while controlling import growth at 5–6%.
To align with regional standards and bring clarity to the tariff system, the NTP proposes a simplified tariff structure, aiming for an average tariff rate of 9.7% by fiscal year 2029–30. In the initial two years, tariffs will be reduced by over 20% annually, followed by a more moderate annual reduction of 5–10% in subsequent years.
Key features of the policy include restructuring Customs Duty (CD) slabs from five to four (0%, 5%, 10%, and 15%) and reducing the maximum CD rate to 15% over five years. The policy also outlines a plan to eliminate Regulatory Duties (RDs) and Additional Customs Duties (ACDs) within four to five years, targeting a reduction in the trade-weighted average tariff from the current 10.6% to below 6%.
The current tariff model—based on cascading rates (0%, 3%, 11%, 16%, and 20%)—has faced criticism for hampering industrial growth and economic diversification. The new policy aims to resolve these issues by streamlining rates and phasing out tariff peaks, especially in sectors like automotive, which has long been protected by high tariffs. Reforms in this sector are set to begin in July 2026.
Another significant move is the gradual phasing out of the 5th Schedule of the Customs Tariff, which currently provides industry-specific exemptions. Removing these concessions is expected to improve fairness, reduce inefficiencies, and cut down on compliance burdens.
The government anticipates that the policy will support domestic industries, attract investment, and create jobs, particularly in export-oriented sectors. Experts believe that reduced tariffs will lower input costs, enhance industrial competitiveness, and help control inflation, especially in imported food and raw materials.
Overall, the NTP 2025–30 marks a major policy shift aimed at long-term economic growth, positioning Pakistan more competitively in global markets while promoting transparency and efficiency in trade and industry.
