The government has decided to remove a range of non-essential restrictions and trade barriers in the upcoming federal budget for 2026–27, marking a significant shift towards trade liberalisation and economic reform.
According to official sources, the plan includes the phased elimination of more than 2,600 regulatory and non-tariff barriers affecting imports and exports. In the first phase alone, 60 to 70 unnecessary restrictions are expected to be withdrawn.
Officials in the Ministry of Finance said the move aligns with recommendations of the International Monetary Fund, under which the average tariff rate is proposed to be reduced from 10.7 per cent to 9.5 per cent in the upcoming budget. The long-term target is to bring it down to 7.4 per cent by 2030 under the National Tariff Policy 2025–30.
The plan also includes a gradual reduction of regulatory duties on vehicles, aiming to bring them down from 40 per cent to zero over a four-year period. Key sectors such as textiles, pharmaceuticals, leather, and chemicals are also expected to see the removal of trade barriers.
Officials said the 2026–27 budget will include broader measures to improve the ease of doing business, while import duties will also be reduced in phases.
Further revisions to the Export and Import Policy Orders are expected by November 2026, as part of a structured reform process. The final approval of these measures will be given by the Cabinet Committee on Regulatory Reforms.
The Finance Ministry said the reduction in average tariffs is expected to lower import costs and boost exports as well as foreign investment.