The Government of Pakistan is preparing a broad set of trade reforms aimed at improving market access and easing restrictions on imports, in line with commitments made to the International Monetary Fund.
According to official sources, more than 2,660 non-tariff barriers—currently limiting imports—will be gradually eliminated. These restrictions affect a wide range of sectors, including mobile phones, automobiles, dairy products, textiles, steel, and pharmaceuticals.
The government has assured the IMF that the process will begin in June 2026, with the goal of improving the availability of raw materials for local industries and boosting overall trade activity.
Officials say amendments to 76 Harmonized System (HS) codes are likely to be introduced in the upcoming federal budget. These changes, along with reductions in import duties, are expected to be implemented through the Finance Bill.
The plan includes simplifying or removing all identified non-tariff barriers in phases. Under the Export Policy Order and Import Policy Order, authorities aim to eliminate 2,662 such barriers by June 2026, with full implementation targeted by November 2026.
Separately, the government is also reviewing a new auto policy that could significantly reduce duties on used car imports. The policy, expected to take effect from July 1, 2026, is currently under discussion with the IMF.
Under the proposed framework, additional customs and regulatory duties on imported vehicles would be reduced gradually over the next four to five years. By 2030, substantial cuts in duty rates are anticipated.
The proposal also includes allowing the import of vehicles older than five years, subject to strict safety, environmental standards, and proper certification.
Sources indicate that the draft auto policy is in its final stages and is expected to be completed within the current month. It will undergo further consultations with the IMF before being presented to the federal cabinet for approval.
These reforms are part of a broader strategy to liberalize trade, support industrial growth, and align Pakistan’s economic policies with international standards. If implemented effectively, the measures could improve competitiveness, reduce costs for businesses, and strengthen the country’s position in global markets.
