Pakistan decides to cut import duties, remove non-tariff barriers

BusinessEditor's ChoicePakistan decides to cut import duties, remove non-tariff barriersBy Shoaib Nizami-Apr 23, 2026Islamabad: The federal government is considering reducing import duties and removing thousands of non-tariff barriers to facilitate trade and improve market access. According to sources, more than 2,660 non-tariff barriers, currently discouraging imports, are set to be gradually eliminated. These include restrictions affecting the import of mobile phones, cars, dairy products, textiles, steel bars, and medicines. Pakistan has assured the International Monetary Fund (IMF) that the process of removing these barriers will begin in June 2026. The move follows IMF recommendations to ease import curbs so that local industries can access raw materials more easily. Officials said changes are expected in 76 HS (Harmonized System) codes in the upcoming federal budget to promote international trade. Measures to reduce import duties are likely to be introduced through the Finance Bill. The government plans to eliminate or simplify all identified non-tariff barriers in phases. Under the Export Policy Order and Import Policy Order, the removal of 2,662 such barriers is targeted by June 2026, with the overall process expected to be completed by the end of November 2026. Separately, the government is also reviewing a proposal to gradually reduce duties on used car imports as part of a new auto policy expected to take effect from July 1, 2026. Sources said the draft policy is currently under preparation and initial consultation with the IMF. It proposes a phased reduction in additional customs duties and regulatory duties on imported vehicles over the next four to five years, with significant cuts in customs duty rates expected by 2030. Under the plan, vehicles older than five years may eventually be allowed for import, subject to strict safety and environmental standards and proper certification. The draft policy is likely to be finalized within the current mont...