(Karachi – November 14, 2025): ICMA Pakistan has emphasized the importance of cost-based, sector-sensitive implementation of the recently announced National Tariff Policy (NTP) 2025–30 and said that it should be fully aligned with the upcoming National Industrial Policy, to ensure realistic tariffs to strengthen domestic manufacturing, support export diversification, and enable import substitution.
In a Report recently launched by ICMA’s Research and Publications Department, it highlights that tariff levels should be set based on industry costs and input-output analysis, with gradual adjustments that prioritize competitive sectors while protecting strategic industries such as automobiles, defense, electronics, and IT hardware. These measures are essential to prevent premature industrial decline, strengthen competitiveness, and provide policy predictability for investors. The recommendations are detailed
ICMA notes that the NTP 2025–30 represents a transformative shift in Pakistan’s trade policy. By reducing the simple average tariff to 9.7% by FY2030 and phasing out Additional Customs Duties (ACDs) and Regulatory Duties (RDs), the policy moves from a revenue-focused approach to one that fosters industrial competitiveness, transparency, and global integration. Estimates suggest these reforms could increase exports by 10–14% and boost GDP by 2%, while improved compliance and investment may raise revenues by 7–9%. Between July 2024 and August 2025, Pakistan’s exports averaged USD 2.7 billion per month, reflecting 6.2% year-on-year growth, with strong performance in textiles and emerging sectors, demonstrating the early positive impact of tariff rationalization.
ICMA stresses that sectoral diversification is vital for long-term success. Duty-free imports of raw materials and machinery in textiles, engineering, and ICT sectors will reduce production costs, enhance competitiveness, and encourage higher-value products. Agro-processing, pharmaceuticals, chemicals, renewable energy, minerals, leather, and automobile sectors will also benefit from simplified tariffs, optimized cost structures, and improved export readiness.
ICMA highlights opportunities in technical textiles, AI-enabled ICT services, fintech solutions, green technologies, processed foods, halal and organic products, EV manufacturing, and pharmaceutical exports to Africa and Central Asia. Pakistan’s tariff reforms are benchmarked against successful Asian economies like Vietnam and Malaysia, supporting regional competitiveness and integration into global value chains.
ICMA emphasizes that successful implementation requires strong institutional coordination and full integration with industrial policy. Tariff reforms should support domestic manufacturing, technology adoption, and value addition. Fiscal stability should be maintained through non-tariff revenue diversification, improved documentation, and productivity-linked incentives. Transitional support packages, including tax incentives, technology grants, and subsidized credit, can help industries adjust to global competition and improve productivity.
ICMA also recommends introducing a monitoring and evaluation framework with key performance indicators such as industrial output growth, export diversification, and revenue trends, with ICMA contributing through annual Tariff Policy Review Reports to ensure timely adjustments.
ICMA recommends forming a Tariff Policy Coordination Council under the Ministry of Commerce, including representatives from FBR, NTC, BOI, MoF, and professional bodies like ICMA. This council would streamline decision-making, ensure policy coherence, and prevent overlapping mandates.
ICMA further emphasizes adopting “smart protectionism”, where tariff reductions are linked to globally competitive sectors and supported by reciprocal trade benefits through FTAs and PTAs. Green growth is encouraged through duty-free imports of solar panels, wind components, and sustainable technology inputs to promote renewable energy development.
