Pakistan Revises Tariffs to Boost Economic Competitiveness

Karachi: In a move aligned with the National Tariff Policy 2025-30, the Pakistani government has revised its Additional Customs Duty (ACD) and Regulatory Duties (RDs), aiming to enhance the country’s economic competitiveness. The government has issued Statutory Regulatory Orders (SROs) that adjust the ACD rates to 0%, 2%, 4%, and 6%, down from the previous rates of 2%, 4%, 6%, and 7%. Furthermore, RDs have been removed on several Pakistan Customs Tariff (PCT) codes, with the maximum RD rate reduced from 90% to 50%.

The changes are expected to impact various sectors differently. Margins for auto assemblers are likely to stabilize from recent highs, while industries such as chemical, steel, and textile spinning/weaving might experience pressure on their profit margins.

Despite these adjustments, the overall trade balance impact is projected to be manageable, with incremental imports expected to remain below the US$1.0 billion mark, according to estimates by AKD Securities Limited. The tariff rationalization is part of a broader strategy to streamline duties and encourage competitiveness across economic sectors.