• Overhaul aims to cut customs, regulatory duties
• Reforms expected to boost exports by $5bn in five years
• Simple average tariff to fall from 19pc to 9.5pc

ISLAMABAD: In a major policy shift, Prime Minister Shehbaz Sharif has approved a comprehensive five-year tariff reform plan to be announced in the federal budget 2025-26, aiming to drastically reduce customs duties, additional customs duties, regulatory duties on raw materials and semi-finished goods, and a phased reduction in overall tariff protections for select industries.

The first phase of the reform, set to be launched with the next budget, introduces a simplified customs duty structure with slabs of 0, 5, 10, 15, and 20 per cent. The existing 16pc slab will be reduced to 15pc, while the 11pc rate will drop to 10pc. The 3pc slab will be abolished, with products either moved to a zero-duty category or the new 5pc slab.

The proposed tariff overhaul, seen by Dawn, is set to eliminate the additional customs duty of 2pc on 4,294 tariff lines in the upcoming budget. The plan also includes a reduction of additional customs duty from 4pc to 2pc on 545 tariff lines, from 6pc to 4pc on 2,227 tariff lines, and from 7pc to 6pc for all products currently subject to a customs duty above 20pc.

The government is set to slash........

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