In a bold move to invigorate its economy, Pakistan has announced a strategic plan to drastically reduce its average tariff rate from 20.19% to a mere 9.7% over the next five years. This ambitious initiative is a cornerstone of the draft National Tariff Policy 2025-30, designed to foster export-led growth and generate substantial employment opportunities across the nation.

The comprehensive policy outlines a clear roadmap for tariff rationalization. Key measures include the complete elimination of all regulatory duties and the systematic phasing out of additional customs duties by 2029. Furthermore, Pakistan’s current five-tier customs duty structure will be streamlined into a more simplified four-slab system: 0%, 5%, 10%, and 15%.

According to commerce officials, this policy is projected to yield significant economic benefits. Based on World Bank modeling, a full implementation of the policy could see Pakistan’s exports surge by an impressive 10–14%, while imports are anticipated to rise by 5–6%. This transformative approach underscores Pakistan’s commitment to creating a more competitive and open trade environment, ultimately aiming for sustainable economic prosperity.