ISLAMABAD: The federal government is considering a broad overhaul of its trade regime, including cuts in import duties and the phased removal of thousands of non-tariff barriers to improve market access and facilitate trade.
According to sources, more than 2,660 non-tariff barriers that currently restrict imports are expected to be gradually eliminated. These measures affect a wide range of sectors, including mobile phones, automobiles, dairy products, textiles, steel, and pharmaceuticals.
Pakistan has assured the International Monetary Fund (IMF) that the process will begin in June 2026, in line with recommendations aimed at easing import restrictions and improving access to raw materials for local industries.
Officials said amendments are expected in 76 HS (Harmonized System) codes in the upcoming federal budget to support trade facilitation. Proposed duty reductions are also likely to be introduced through the Finance Bill.
The government plans to remove or simplify all identified non-tariff barriers in phases, with 2,662 measures targeted for elimination under the Export Policy Order and Import Policy Order by June 2026, and full implementation expected by November 2026.
Separately, authorities are also reviewing a new auto policy that proposes a gradual reduction in duties on used car imports, potentially effective from July 1, 2026.
Sources said the draft policy, currently being developed in consultation with the IMF, suggests a phased cut in additional customs and regulatory duties over the next four to five years, with major reductions in overall tariffs expected by 2030.
Under the proposal, vehicles older than five years may eventually be allowed for import, subject to strict safety, environmental, and certification requirements.
The draft is expected to be finalized this month before further consultations with the IMF and subsequent approval by the federal cabinet.