Daily News Blog

Pakistan Implements Tariff Reform to Boost Exports

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In five years, the country intends to increase its exports by US$ 5 billion. The measures will come into force on July 1 and are already being opposed by all local producers accustomed to protectionism.

Pakistan knows that a country that does not export is a country that does not grow. That is why, in an effort to revive its economy, the government has approved a tariff reform to be implemented over five years. The objective: to reduce import tariffs and eliminate the protectionist barriers that the country has traditionally put in place. If all goes according to plan, the measures will be implemented as of July 1.

With the reform, the government hopes to boost remarkable growth in imports and attract investment in key sectors. However, the government is facing opposition from traditional and long-established domestic industries that are resisting the idea of losing market share.

The executive reduces the tariff from the current 19% to 9.5% over five years. The tariff will be applied in tranches (0%, 5%, 10%), with a maximum tariff of 15%, eliminating the peaks that currently exceed 20%. Tariffs ranging from 2% to 7% will be phased out, as well as regulatory tariffs ranging from 55 to 905.

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