Islamabad, September 1, 2024 — The Pakistani government is preparing to announce a major trade liberalization plan, valued at Rs. 476 billion, aimed at stimulating exports and boosting economic growth. The Tariff Rationalization for Export-Led Growth plan, which has secured in-principle approval from Prime Minister Shehbaz Sharif, now awaits final approval from the cabinet and the International Monetary Fund (IMF).
The plan proposes a substantial overhaul of Pakistan’s import tax structure, including the elimination of regulatory duties and additional customs duties. It also outlines a gradual reduction of sales and withholding taxes at the import stage. These changes are intended to lower the average import tariff from nearly 20% to below 15% over the next three to five years.
By reducing production costs for export-oriented industries, the government aims to enhance the global competitiveness of Pakistani products. The strategy is expected to drive a significant increase in export activity, compel local industries to innovate, and foster broader economic development.
The government’s proposal is seen as a strategic move to address trade challenges and invigorate the nation’s economy, with the forthcoming approval process set to determine the plan’s impact on Pakistan’s economic trajectory.
