In a high-level meeting chaired by Prime Minister Shehbaz Sharif on the National Tariff Policy, a significant and gradual reduction in import tariffs was approved to promote exports and attract investment.
During the meeting held at the Prime Minister’s House, the Prime Minister reaffirmed his commitment that the government will leave no stone unturned in achieving economic stability, generating employment opportunities, and ensuring the complete and lasting eradication of inflation.
After consultations with national and international economic experts, Prime Minister Shehbaz Sharif took a historic step by approving a comprehensive plan for fundamental economic reforms, including a gradual but notable reduction in tariffs.
This move is being seen as a major milestone towards economic improvement that will pave the way for export-driven growth. The decision is expected to help reduce unemployment and control inflation.
According to the official statement, the reduction in tariffs will encourage international investment, creating new job opportunities. The government is actively working to employ the public, especially to offer dignified jobs to educated youth.
Prime Minister Shehbaz Sharif has directed the complete removal of Additional Customs Duty, currently ranging from 2 to 7 percent, and Regulatory Duty, which currently stands between 5 to 90 percent, within the next 4 to 5 years.
He also decided to cap Customs Duty at a maximum of 15 percent, noting that at present, the duty on some items exceeds even 100 percent. The duty slabs have now been limited to four, which will significantly reduce legal complications in imports and ensure equal opportunities for various industries.
This historic decision is expected to open more avenues for foreign investment in the country’s economy, making raw materials, intermediate goods, and capital equipment more accessible and affordable for local industries.
Furthermore, increased competitiveness will make local industries more efficient and competitive, boosting the country’s export earnings and aiding in the control of inflation and currency devaluation.
According to the statement, the Prime Minister thoroughly reviewed all aspects of the proposal. The reduction in tariffs will not only help stabilize the current account deficit but also lead to higher revenue generation compared to existing customs duties.
The meeting was attended by Federal Minister for Commerce Jam Kamal Khan, Federal Minister for Economic Affairs Ahsan Cheema, Federal Minister for Finance and Revenue Muhammad Aurangzeb, Federal Minister for Petroleum Ali Pervaiz Malik, Special Assistant to the Prime Minister Haroon Akhtar, and senior officials from relevant departments.
