Govt Eyes Import Duty Relief, Removal of Trade Barriers in Upcoming Budget

The government has begun preparations for the upcoming federal budget, focusing on reducing import duties and removing non tariff barriers following assurances given to the International Monetary Fund.

Sources said Pakistan has committed to eliminating non tariff barriers on 76 HS codes as part of broader trade reforms agreed with the IMF. More than 2,600 such barriers are expected to be removed by June 2026 to improve trade flows and market efficiency.

The planned reduction in import duties is aimed at promoting international trade, lowering input costs, and improving competitiveness across key sectors. Officials said these measures are part of a wider effort to align Pakistan’s trade regime with global standards.

The review of export and import policy orders will be carried out in phases, with completion targeted by November 2026. The reforms are expected to simplify regulatory procedures and reduce compliance burdens for businesses.

Key sectors including textiles, leather, pharmaceuticals, and automobiles are likely to benefit from the removal of restrictions and lower duties, which could help reduce production costs and support exports. The National Tariff Policy 2025 to 2030 will be incorporated into the Finance Bill, while further legal backing will be provided through amendments in the Finance Act for FY 2027.

Officials said the government is committed to continuing tariff rationalization and removing unnecessary protectionist measures to create a more transparent and competitive market. The Cabinet Committee on Regulatory Reforms will take the final decisions on eliminating trade barriers as part of the broader reform agenda linked to IMF commitments.