In a bold step towards transforming Pakistan’s economic landscape, the federal government has introduced the draft of the National Tariff Policy (NTP) 2025–30, unveiled during the Regulatory Reforms Conference held in Islamabad on Wednesday.
Organized by the Board of Investment (BoI), the conference served as a strategic platform to advance regulatory simplification and industrial competitiveness. It was attended by senior government officials, diplomats, private sector stakeholders, and reform advocates—all united under the goal of reshaping Pakistan’s economic direction.
A Predictable, Transparent Tariff Regime
Unveiling the draft policy, Rana Ihsaan Afzal, Coordinator to the Prime Minister on Commerce, emphasized the government’s resolve to streamline the tariff structure into a more investment-friendly and growth-oriented framework.
“The National Tariff Policy 2025–30 is designed to create a predictable, transparent, and investment-friendly tariff structure,” Afzal said, according to a Ministry of Commerce statement.
He added that the policy would catalyze export-led growth and bring long-term predictability for investors by rationalizing duties and facilitating trade.
Key Policy Highlights:
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Phased Elimination of Extra Duties:
The government plans to eliminate Additional Customs Duties (ACDs) within four years and Regulatory Duties (RDs) within five years—long considered distortive elements in Pakistan’s import regime. -
Simplified Customs Slabs:
A new four-tier Customs Duty structure—0%, 5%, 10%, and 15%—will replace the existing complex system, improving clarity for businesses and investors. -
Duty-Free Raw Materials:
Tariffs will be reduced on around 7,000 tariff lines, particularly focusing on raw materials and intermediate goods, unlocking an estimated Rs200 billion in benefits for the industrial and trade sectors. -
Sectoral Prioritization:
Industries identified as key beneficiaries include textiles, engineering, pharmaceuticals, and IT—with specific incentives for nascent and green sectors.
Strategic Goals and Economic Impact
The policy aims to increase industrial productivity, boost employment, and improve Pakistan’s global export competitiveness. By reducing production costs and improving access to critical inputs, the policy intends to:
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Attract both foreign and domestic investment
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Enable scalability and innovation in manufacturing
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Create a foundation for high value-added exports
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Build investor confidence through policy continuity
Afzal described the NTP as a transformative tool that will help Pakistan shift away from protectionist inefficiencies and toward global trade integration.
“These reforms will enable Pakistan’s industries to scale, compete globally, and shift towards higher value-added exports,” he said. “We anticipate not just stronger GDP growth, but also increased employment, improved industrial productivity, and enhanced investor confidence.”
Broader Reform Context
This announcement aligns with Pakistan’s broader economic reform agenda. The government has signaled a paradigm shift toward industrial competitiveness, including ease of doing business, regulatory simplification, and trade facilitation as central pillars of its medium-term growth strategy.
Also present at the event were Federal Minister for Industries and Production Haroon Akhtar, and Federal Minister for the Board of Investment Qaiser Ahmed Sheikh, underscoring cross-ministerial coordination in delivering reform.
The NTP 2025–30, if effectively implemented, could become a cornerstone policy for Pakistan’s industrial renaissance, attracting capital, creating jobs, and strengthening the trade balance in the years ahead.
