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Pakistan Cuts Duties for Construction, Pharma Inputs and Logistics

Removing targeted customs charges and upgrading the tariff regulator with IT plus AI is meant to cut costs for exporters to boost exports to attract investment.

Overview

  • The government announced on Thursday that it will reduce customs duties on specialised vehicles and construction machinery to lower building costs and spur infrastructure investment.
  • Officials said duties on raw materials used in pharmaceutical production, with priority for inputs for cancer medicines, will be eliminated to reduce drug manufacturing costs.
  • Tariffs on reefers, containers and semi‑trailers will be removed to strengthen cold‑chain capacity and cut transport costs for exporters.
  • Prime Minister Shehbaz Sharif ordered the National Tariff Commission to adopt global best practices and modernize operations using information technology plus artificial intelligence to speed investor decisions.
  • Officials described the changes as a phased rollout under the National Tariff Policy 2025–30 with formal notifications and fiscal details still pending, creating trade‑offs between revenue impact and export competitiveness.