ISLAMABAD: Pakistan is likely to reduce import duties on a wide range of goods in the upcoming federal budget, according to details of ongoing negotiations between Pakistan and the International Monetary Fund (IMF).
Sources said discussions between Pakistan and the IMF have focused on tariff rationalisation measures aimed at lowering import, regulatory and customs duties on multiple items.
Officials indicated that regulatory duties and additional customs duties on imported goods may be reduced in the next budget. Duties on imported vehicles could also be lowered under the proposed changes.
The export sector is expected to benefit from reduced tariffs on raw materials. Tax relief is also likely for telecom equipment, including machinery used for 5G infrastructure.
The government has prepared a draft National Tariff Policy under the direction of the prime minister. The policy aligns tariff reductions with IMF targets, with the aim of improving the competitiveness of local industry.
Sources said additional customs duties on 3,149 tariff lines of imported goods may be reduced. Regulatory duties on more than 1,900 tariff lines could also be lowered.
Tax relief is also expected for imported agricultural inputs. Duties on agricultural machinery, equipment and parts not produced locally may be reduced.
The government is expected to remove an additional 2 percent customs duty on 518 tariff lines in the 15 percent slab.
For 2,166 tariff lines in the 20 percent slab, the additional customs duty may be reduced from 4 percent to 2 percent. On 468 tariff lines above the 20 percent slab, the duty may be cut from 6 percent to 4 percent.
Additional customs duties on machinery and equipment used for electric vehicle and motorcycle assembly plants may also be reduced, sources said.
