Page 40 - CMA Journal (Sep-Oct 2025)

Focus Section

Table 2: Differences NTP 2019-24 and NTP 2025-30 8

Policy Aspect National Tariff Policy 2019–24 National Tariff Policy 2025–30
Policy Duration Five-year policy (2019–24) Five-year policy (2025–30)
Overall Objective To rationalise tariffs and shift focus from To promote export-led growth, rationalise tariffs, and
revenue generation to trade policy, simplify concessionary regimes, we need an outward-
support industrialisation and exports. looking and globally competitive framework.
Approach to Tariffs Introduced the use of tariffs as a trade Comprehensive shift to export-led, efficiency-based trade
policy tool instead of a revenue measure; policy; focus on predictability and transparency.
initiated simplification.
Tariff Slabs 5 slabs (0%, 3%, 11%, 16%, 20%) with Reduced to 4 slabs (0%, 5%, 10%, 15%) within 5 years.
some peaks above 20%.
Maximum Customs Up to 20% on some finished goods; higher Maximum 15% by 2029–30; peaks above 20% (mainly in
Duty (CD) peaks allowed. auto) to be phased down.
Average Tariff Target Reduced average tariff from 10.6% (2018– Target average tariff 9.7% by 2029–30; trade-weighted
19) to 6.7% (2023–24). average below 6%.
Elimination of ACD ACDs and RDs are selectively reduced; no All ACDs to be eliminated within 4 years (by 2029).
(Additional Customs fixed phase-out schedule.
Duty)
Elimination of RD Gradual rationalisation; ad hoc imposition All RDs to be eliminated within 5 years (by 2030).
(Regulatory Duty) continued for some goods.
Fifth Schedule Maintained several products, enjoyed The 5th schedule is to be phased out and merged into the
(Concessionary concessions with complex documentation 1st schedule within 5 years; concessions are simplified or
Regime) and discretionary approvals. withdrawn.
Sector-Specific Targeted Textile, Pharma, Iron & Steel, Expanded rationalisation across all sectors, including
Rationalisation Dyes, Footwear, Paper, and Engineering auto, agriculture, and manufacturing.
sectors.
Auto Sector Policy Limited adjustments; no dedicated plan Comprehensive rationalisation post-AIDEP 2026:
for ACD/RD elimination; auto policy under eliminate ACDs/RDs, review SROs, and allow import of
separate framework (AIDEP 2021–26). used vehicles under quality and safety standards.
Institutional Established the Tariff Policy Board (TPB) Continuation of TPB/TPC; strengthened monitoring,
Framework and Tariff Policy Centre (TPC). annual reviews, and technical committees.
Export Orientation Aimed to reduce anti-export bias and Strong emphasis on export-led growth, global value
improve competitiveness. chain integration, and competitiveness.
Incentives for No specific mention of green or energy- Explicit inclusion of support for energy-efficient and
Green/Energy- efficient technologies. green technologies.
Efficient
Technologies
Expected Economic Gradual improvement in exports; reached Predicted export increase (10–14%), trade balance
Impact record USD 39.52 billion in 2022; modest improvement, higher investment, employment growth,
gains despite economic challenges. and reduced imported inflation.

The National Tariff Policy (NTP) 2025–30 is based on the ture, manufacturing, and the auto industry, where after
premise of the 2019–24 policy but is more ambitious, 2026, duty reductions and SRO reviews will begin. Nota-
export driven, and globally competitive. Although the bly, the 2025–30 policy presents assistance to green and
previous framework aimed to change the concept of energy-saving technologies, which means that Pakistan is
tariffs from a revenue-generating tool to a trade facilita- oriented towards sustainability. Overall, it is an indicator
tion tool, the new policy focuses on transparency, of a radical change in tariff rationalisation towards indus-
predictability, and integration into global value chains. trial competitiveness, stimulating investments, and
The number of slabs (0-11%, 16-20%) has been reduced developing exports sustainably.
to four standardised rates (0%–5%–10%–15%), and the
The National Tariff Policy (NTP) 2025–30 of Pakistan
maximum customs duty will be limited to 15% by
represents a subtle change in the country's trade and
2029–30. In contrast to the old one, the new policy has
industrial policy, aiming to strike the right balance
strict deadlines to abolish Additional Customs Duties in
between protectionism and competitiveness. The policy
four years and Regulatory Duties in five years, and to
does not adhere to the permanent protection of domestic
eliminate the cumbersome 5th schedule to develop a
industries; instead, it employs a temporary protection
fairer and more efficient system. Sectoral reforms will
approach rather than sudden liberalisation.
now extend beyond textiles and steel to include agricul-
38 ICMA’s Chartered Management Accountant, Sep-Oct 2025