Sources say 60 to 70 unnecessary restrictions will be eliminated in the new budget
Islamabad: The government has decided to remove unnecessary restrictions and trade barriers in the upcoming budget.
According to sources, a principled decision has been made to gradually eliminate old trade barriers in the federal budget for the fiscal year 2026–27. In this regard, 60 to 70 unnecessary restrictions will be removed in the new budget, while more than 2,600 barriers imposed on imports and exports will be gradually reduced.
Sources from the Ministry of Finance say that, on the recommendation of the International Monetary Fund (IMF), there is a proposal to reduce the tariff rate from 10.7% to 9.5% in the next budget. A target has also been set to bring the average tariff down to 7.4% by 2030.
There is a plan to reduce regulatory duty on vehicles from 40% to zero over four years, and to remove obstacles in sectors such as textiles, pharmaceuticals, leather, chemicals, and others. Similarly, the 2026–27 budget will include measures to make doing business easier.
Under the proposed measures, reducing non-tax barriers and taking additional steps to support the economy are under consideration. There is also a proposal to gradually reduce import duties in the new budget.
According to officials, further amendments to export and import policy orders are expected by November 2026. Non-tariff barriers in various sectors will be eliminated in phases, and duty reductions will be implemented under the National Tariff Policy 2025–30.
The Ministry of Finance states that lowering the average tariff will help reduce import costs, and these reforms are expected to boost exports and investment.
This is worth noting that federal govt is reforming the trade sector with meaningful reformations in order to boost the trade and provide business friendly environment to attract foreign investors. The measures are expected to bring renaissance in business sector, ultimately boosting Pakistan’s economy.
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