Page 54 - CMA Journal (Sep-Oct 2025)

National Tariff Policy Focus Section

2025–30: Reshaping

Pakistan’s Trade Regime

for Export-Led Growth

By: ICMA Research and Publications Department

Preamble objectives necessitates diversification beyond textiles,
accompanied by substantial investment in high value
Sustainable export-led growth is crucial for Pakistan’s sectors such as Information Technology, Pharmaceuticals,
long term economic resilience and global competitive- and Engineering goods, as well as the expansion of
ness. The ICMA Research and Publications Department preferential trade agreements to enhance market access.
emphasizes that achieving export-led growth will require
a comprehensive strategy, integrating tariff rationaliza- With Pakistan’s current tariff burden exceeding 20%, the
tion, export diversification, and industrial upgrading highest in South Asia, the policy aims to remove structur-
within a coherent policy framework. In this context, al distortions, attract export-oriented investment, and
Pakistan’s National Tariff Policy (NTP) 2025-30 represents integrate domestic industries into global value chains.
a pivotal reform, aiming to reduce the simple average Building upon earlier liberalization efforts, the NTP
tariff to around 9.7% and the trade weighted average to 2025-30 aspires to deliver resilient, competitive, and
below 6% by FY2030 through the phased elimination of diversified export-led growth.
Additional Customs Duties, Regulatory Duties, and the NTP 2019–24 vs. NTP 2025–30: At a Glance
Fifth Schedule. According to GTAP estimates, these
reforms could: Pakistan’s tariff regime has undergone a significant policy
evolution over the past decade. The National Tariff Policy
• Increase exports by 10 to 14%
(NTP) 2019-24 laid the foundation for a predictable,
• Boost GDP by 2%
growth, oriented framework by linking tariffs with indus-
• Generate 7 to 9% higher revenues through
trial policy and rationalizing import duties. Building on
enhanced compliance and investment
this base, the NTP 2025-30 takes a more strategic, reform,
By fostering competitiveness and predictability, the NTP driven approach, focusing on export diversification,
positions Pakistan to diversify its exports and integrate value addition, and integration into global value chains.
more effectively into global value chains. Achieving these

Feature NTP 2019-24 What is New / Expanded in NTP 2025-30
Multiple uneven slabs with high
ACDs/RDs and discretionary phased elimination of ACDs (4 years) and
exemptions. RDs (5 years).
Average Duty Dropped from around 10.6% to Target of 9.7% simple average customs duty
Levels approximately 6.7% by FY2024. by FY2030.

Scope of Duty removal on raw materials and

Rationalization capital goods across key sectors. (around 7,000) to see cuts; emphasis on textiles,
engineering, pharmaceuticals, and IT.
Duty-Types (ACD, Heavy use of ACDs and RDs; ad hoc Gradual phase-out of ACDs and RDs; integration of
RD, 5th Schedule) exemptions. exemptions into First Schedule for transparency.
Institutional Strengthened mandates and annual
Mechanisms Policy Centre (TPC) created under recommendation mechanisms.
NTP 2019-24 to formalize
processes.

Economic / Trade Focused on rationalization and Export-led, emphasizing global integration, GVCs,
Orientation input access. and green industrial growth.

52 ICMA’s Chartered Management Accountant, Sep-Oct 2025