PM Shehbaz Approves Gradual Elimination of Import Duties

Prime Minister Shehbaz Sharif on Friday approved a phase-wise elimination of additional customs duty (ACD) and regulatory duty (RD) along with import tariffs to attract foreign investment and promote exports. The ACD and RD will be abolished over the next four to five years. Also, a cap of 15 percennt has been approved for Customs Duty (CD), which currently exceeds 100 percent on certain imported goods. The government has also reduced the number of CD slabs to four to simplify the tariff structure and reduce legal and procedural hurdles faced by importers. The prime minister stressed that the reforms were developed through extensive consultation and are central to efforts aimed at stabilising the economy, creating jobs, and curbing inflation. The lower tariff regime is expected to give local industries greater access to cheaper raw materials, intermediate inputs, and machinery. The changes are also expected to attract more foreign investment by creating a predictable and business-friendly import environment. To ensure implementation, the prime minister also constituted a dedicated committee.