Pakistan unveils draft tariff policy to drive export-led growth

Coordinator to the Prime Minister on Commerce, Rana Ihsaan Afzal (Center) attending a regulatory reforms conference in Islamabad, Pakistan, on June 18, 2025. (Government of Pakistan)
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Updated 18 June 2025
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Pakistan unveils draft tariff policy to drive export-led growth

  • The policy plans to phase out Additional Customs Duties, rationalize the tariff structure
  • It aims to reduce tariffs on raw materials, deliver $700 million in benefits to industries

ISLAMABAD: Pakistan on Wednesday unveiled a draft National Tariff Policy 2025-30 at a regulatory reforms conference, aiming to shift the country toward an export-led growth model by overhauling its trade tariff structure to boost industrial productivity, investment and competitiveness.

The event was organized by the Board of Investment (BoI), and attended by senior government officials, diplomats and private sector representatives.

The policy sets out sweeping reforms, including the phasing out of Additional Customs Duties (ACDs) within four years, elimination of Regulatory Duties (RDs) and the 5th Schedule within five years, and the creation of a simplified four-tier Customs Duty structure of 0 percent, 5 percent, 10 percent and 15 percent.

Key sectors expected to benefit include textiles, engineering, pharmaceuticals and information technology, with the policy designed to lower production costs and attract businesses.

“The National Tariff Policy 2025-30 is designed to create a predictable, transparent and investment-friendly tariff structure,” said Rana Ihsaan Afzal, Coordinator to the Prime Minister on Commerce, at the conference.

“By facilitating duty-free access to raw materials, phasing out ACDs and RDs and supporting nascent and green industries, this policy paves the way for innovation, employment generation and sustained economic growth.”

Afzal said implementation will begin with tariff reductions on approximately 7,000 tariff lines, mainly raw materials and intermediate goods, expected to deliver an estimated Rs200 billion ($700 million) in benefits to trade and industry.

“These reforms will enable Pakistan’s industries to scale, compete globally and shift toward higher value-added exports,” he added. “With these changes, we anticipate not just stronger GDP growth, but also increased employment, improved industrial productivity and enhanced investor confidence.”

According to an official statement issued by the BoI, the participants lauded the government’s efforts to streamline regulation and modernize trade facilitation, calling the draft policy a significant step toward Pakistan’s long-term economic transformation.
 


Pakistan’s capital police look to military expertise to build elite SWAT force

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Pakistan’s capital police look to military expertise to build elite SWAT force

  • A SWAT force is an elite, specially trained police unit that is deployed in high-risk and complex security situations
  • Islamabad police have requested attachment of two army majors, 16 SSG commandos for training of personnel

ISLAMABAD: Islamabad police have sought the assistance of Pakistan Army to help establish a Special Weapons and Tactics (SWAT) unit, an official said on Friday, as the capital police department undertakes multifaceted duties.

The development comes amid a surge in militancy in Pakistan and follows a suicide blast that killed 12 people and injured 36 others outside a district court’s complex in Islamabad’s G-11 sector in Nov. last year, prompting heightened security measures by authorities.

A SWAT force is an elite, specially trained police unit that is deployed in high-risk and complex situations that regular police are not equipped to handle. Various countries train their SWAT personnel in close-quarters combat, tactical movement and breaching, explosives handling and crisis response.

In a letter written to the Islamabad chief commissioner, Inspector General Ali Nasir Rizvi noted the capital police were performing multifaceted duties, including maintenance of law and order, crime prevention as well as security and route assignments, requesting the attachment of army personnel.

“We are establishing a SWAT [unit] and we have asked for officers from them to impart training and the National Police Academy has requested too,” he said.

The Islamabad police have inducted 200 personnel in the SWAT force that is likely to operate under the command and supervision of a senior superintendent of police, according to local media reports.

The capital police department seeks services of two army majors and 16 commandos from the military’s elite Special Services Group (SSG), according to the letter seen by Arab News. Of the 16 commandos, 10 are to be deputed at the National Police Academy.

Late last year, the Islamabad Capital Territory (ICT) administration also introduced an electronic tagging system as part of a broader effort to enhance surveillance, regulate traffic and improve record-keeping in a city that hosts the country’s main government institutions, foreign missions and diplomatic enclaves.

Under the system, vehicles are fitted with electronic tags that can be read automatically by scanners installed at checkpoints across the capital, allowing authorities to identify unregistered vehicles without manual inspections.