
Pakistan to Reduce Import Duties in FY26 Budget to Boost Trade
The government is set to revise import duty structures on semi-finished and finished goods in the upcoming 2025-26 budget, aiming to enhance market accessibility and economic competitiveness.
According to sources, authorities plan to cut Regulatory Duties, Additional Customs Duties, and import tariffs, easing the financial burden on businesses and consumers. Starting July 1, 2025, a 7 percent additional customs duty on select goods will be eliminated, while a 2 percent duty on zero-tariff slabs will also be scrapped. Furthermore, a 1 percent reduction will be applied to imports currently subject to the 3 percent duty slab, bringing them down to 2 percent.
Officials anticipate a gradual decrease in weighted average applied tariffs, currently at 10.6 percent, aiming for 6 percent over the next five years. This 43 percent tariff cut is expected to drive competition, making imported goods more accessible and affordable.
The government’s National Tariff Policy outlines a target of 7.4 percent weighted average tariffs by 2030. Additionally, tariff protection for the automobile sector will be adjusted under the Auto Industry Development and Export Policy (AIDEP) 2026-30, starting next year to align with broader economic reforms.