ISLAMABAD: Pakistan’s Finance Minister Muhammad Aurangzeb has stressed the significance of sustained tariff reform as a cornerstone of Pakistan’s trade policy, the finance ministry said on Monday, as the country aims to boost exports, streamline imports and maintain a sustainable current account deficit.

The statement came after Aurangzeb chaired a meeting of a steering committee for the implementation of the National Tariff Policy, which aims to create a predictable, transparent and investment-friendly tariff structure by facilitating duty-free access to raw materials, phasing out additional customs and regulatory duties, and supporting nascent and green industries to pave the way for innovation, employment generation and sustained economic growth.

Pakistan has set an export target of $44.9 billion in the budget for this fiscal year that began on July 1, with $35.3 billion for goods and $9.6 billion for services sector. The government has proposed a target of $65.2 billion for goods imports, while it expects the imports of services to reach $14 billion, with the overall import volume significantly higher than export figures.

Speaking at Monday’s meeting, the finance minister highlighted that the steering committee was continuously monitoring progress of the tariff policy implementation, state of the country’s foreign exchange reserves, and guiding the transition of domestic industry, according to the finance ministry.

“The National Tariff Policy represents a five-year roadmap toward liberalizing trade, fostering export-led growth, and enhancing industrial competitiveness,” he was quoted as saying by the ministry.

During the meeting, the National Tariff Commission (NTC) outlined its pivotal role in safeguarding domestic industry through rational tariff structuring and trade remedy actions against unfair trade practices, including dumping, subsidized imports and harmful import surges.

The commission apprised the participants of its efforts to bolster institutional capacity, including organizational reforms, targeted technical training, automation of internal processes, establishment of a dedicated facilitation center for exporters, and initiatives to enhance legal and analytical capabilities to strengthen service delivery.

The finance minister urged the commission to ensure a level playing field for local producers, with the participants resolving to fully implement the National Tariff Policy to reinforce Pakistan’s trade competitiveness and industrial development.

Pakistan, currently bolstered by a $7 billion International Monetary Fund (IMF) program, unveiled the tariff policy last month to enable local industries to “scale, compete globally and shift toward higher value-added exports.” Key sectors expected to benefit include textiles, engineering, pharmaceuticals and information technology, with the policy designed to lower production costs and attract businesses.

Separately, Khurram Schehzad, an adviser to the finance minister, said the government had retired Rs500 billion ($1.7 billion) loan to the central bank early, with the overall early paydowns reaching Rs1.5 trillion.

“Early debt retirement while converting shorter-tenure with longer-tenure debt, significantly reduces concentration risk, lowers future liabilities, and strengthens the country’s macroeconomic foundations by curbing reliance on borrowing,” he said on X.

“This latest achievement builds on an earlier milestone — the successful buyback of PKR 1 trillion in market debt completed by December 2024 — the first such operation in Pakistan’s history. Combined, these two strategic actions amount to the early retirement of PKR 1.5 trillion in public debt in FY25, sending a strong signal of economic confidence and reform.”

He said these early repayments and smart refinancing, capitalizing on the significant decline in interest rates with the government’s disciplined borrowing, led to a staggering Rs830 billion in interest cost savings in the outgoing fiscal year that ended on June 30.