ISLAMABAD — Pakistan is set to remove 2,662 non-tariff barriers under the Budget 2026-27, alongside cuts in import duties, as part of a broader push to expand trade, lower costs, and improve market access.
Officials say the reforms target key sectors and are aimed at making trade more efficient, reducing restrictions on imports, and strengthening Pakistan’s position in regional and global markets.
Scope and timeline of reforms
The measures will apply to 76 Harmonized System (HS) codes across industries including textiles, leather, pharmaceuticals, automobiles, and chemicals.
Authorities plan to remove a first set of restrictions by June 2026, with the remaining barriers to be phased out by November 2026.
Tariff cuts under policy framework
Duty reductions will be implemented through the Finance Bill under the National Tariff Policy (2025–30), which outlines a gradual shift toward lower tariffs and simplified trade rules.
Officials say the updated framework is designed to align Pakistan’s trade system with global standards and improve transparency.
Impact on business and investment
The reforms are expected to lower import costs, improve industrial competitiveness, and support export growth. Policymakers say the changes could also attract foreign investment by improving the ease of doing business.
A parallel review has identified the most restrictive barriers for priority removal, with recommendations to be presented to the Cabinet Committee on Regulatory Reform.
Outlook
Analysts say the success of the policy will depend on consistent implementation and support for domestic industries during the transition. Officials maintain the reforms will help position Pakistan as a more competitive trade destination in the region.
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