Pakistan Ties Tariff Reforms to Ambitious \$44.9 Billion Export Target in FY26 Budget

ISLAMABAD — Pakistan’s Finance Minister Muhammad Aurangzeb has reaffirmed the critical role of tariff reforms in driving the country’s export-led growth strategy, tying these efforts directly to the $44.9 billion export target set in the federal budget for FY2025–26, the Ministry of Finance said on Monday.

The minister chaired a high-level meeting of the Steering Committee on the National Tariff Policy (NTP), where he emphasized that a streamlined and transparent tariff structure is essential for trade liberalization, industrial competitiveness, and macroeconomic sustainability.

As per the budget breakdown:

• Total export target: $44.9 billion
  • $35.3 billion in goods
  • $9.6 billion in services
• Import target: $79.2 billion
  • $65.2 billion in goods
  • $14 billion in services

Despite a widening trade gap, policymakers see tariff rationalization as a key to boosting value-added exports and reducing import dependency.

Aurangzeb said the National Tariff Policy represents a five-year strategic blueprint aimed at:

• Facilitating duty-free access to essential raw materials
• Phasing out regulatory and additional customs duties
• Supporting emerging industries, especially in green and tech sectors
• Promoting investment-friendly and predictable trade policies

The National Tariff Commission (NTC) presented its implementation report, highlighting measures to:

• Safeguard local industries against dumping and subsidized imports
• Enhance legal and analytical capacities
• Automate internal processes
• Establish a dedicated Exporter Facilitation Center

The government’s tariff revamp is expected to reduce input costs and improve international competitiveness across key sectors:

• Textiles & Apparel
• Pharmaceuticals
• Engineering
• Information Technology

Aurangzeb noted that the NTP aligns with Pakistan’s IMF-backed structural reforms, with support from the $7 billion loan program, aiming to strengthen export ecosystems and reduce the current account deficit.

In a separate development, Finance Adviser Khurram Shehzad revealed that the government has:

* Retired Rs500 billion (\$1.7 billion) of central bank debt ahead of schedule
* Brought total early repayments in FY25 to Rs1.5 trillion
* Saved Rs830 billion in interest payments in FY24 alone due to early refinancing

> “This is a historic achievement that reduces future liabilities and builds investor confidence,” Shehzad noted on X.

The combination of early debt repayments, smart refinancing, and tariff overhaul sends a strong message to investors, signaling macroeconomic stability, improved governance, and a serious push for exports and industrial growth.

“This isn’t just about reducing debt or expanding trade—this is about transforming Pakistan’s economic foundation,” said Aurangzeb.

📢 For in-depth economic analysis, policy updates, and trade reform insights, visit:
🌐 www.safartitarjuman.com