ISLAMABAD: The Federal Board of Revenue (FBR) has reported a significant 15% increase in duty-free imports during the fiscal year 2024-25, reflecting shifting trade patterns and policy incentives aimed at supporting key sectors of the economy.
According to the FBR’s Year Book 2024-25 released on Tuesday, total duty-free imports rose to Rs8.38 trillion, compared to Rs7.29 trillion in the previous fiscal year. The data highlights a notable expansion in imports availing tax exemptions, particularly among major commodity groups.
The top 15 imported items alone accounted for Rs8.01 trillion worth of duty-free imports in FY25, up from Rs6.14 trillion in FY24, marking a robust increase of 30.5%. Among these, mineral fuels, mineral oils, and related products emerged as the largest component, nearly doubling to Rs2.83 trillion from Rs1.48 trillion a year earlier—an increase of 91.5%.
Meanwhile, imports of photosensitive semiconductor devices remained largely stable, witnessing a marginal decline of 0.1% to Rs1.372 trillion. In contrast, duty-free cotton imports recorded a sharp surge of 185%, reaching Rs436.72 billion compared to Rs153.20 billion in the previous fiscal year, indicating strong demand from the textile sector.
Pharmaceutical imports also showed steady growth, increasing by 18% to Rs161.64 billion from Rs137 billion in FY24. However, duty-free imports outside the top 15 categories dropped significantly by 68%, falling to Rs368 billion from Rs1.15 trillion.
Experts suggest that the rise in duty-free imports reflects targeted policy measures and increased reliance on essential commodities, though it may also raise concerns regarding revenue implications and trade balance pressures.