Reduced regulatory duties on key polymer and plastic products aim to lower industrial input costs and support manufacturing growth in Pakistan.
Pakistan’s industrial sector is set to benefit from lower import costs after the Federal Board of Revenue (FBR) reduced regulatory duties on several categories of polymers and plastics by as much as 50 percent.
The revised tariff structure came into force on July 1, 2026, as part of the federal government’s fiscal year 2026-27 customs and tariff reforms.
According to a newly issued Statutory Regulatory Order (SRO), the FBR has updated regulatory duty rates on multiple polymer and plastic products classified under different Pakistan Customs Tariff (PCT) codes. The move is expected to ease the cost burden on importers and manufacturers that rely on imported raw materials for production.
One of the most significant reductions has been granted to polymers of ethylene imported under PCT code 3923.2100. The regulatory duty on this category has been cut from 10 percent to 5 percent, representing a 50 percent decrease. Industry stakeholders believe this reduction could help lower production costs for packaging and plastic-based manufacturing sectors.
Similarly, the regulatory duty on polymers of vinyl chloride under PCT code 3916.2000 has been reduced from 8 percent to 6.4 percent, reflecting a 20 percent decline compared with the previous fiscal year.
The same reduction has been applied to other plastics classified under PCT code 3916.9000, where the duty rate has also been lowered from 8 percent to 6.4 percent.
Meanwhile, imports of other plastics falling under PCT code 3923.2900 will now attract a regulatory duty of 6 percent, down from 7.5 percent in FY2025-26. This change represents a 20 percent reduction and is expected to provide relief to businesses engaged in plastic processing and packaging operations.
Market analysts suggest that the latest tariff adjustments are part of broader efforts to improve industrial competitiveness, encourage economic activity, and reduce the cost of imported raw materials.
Lower duties on polymers and plastics may also contribute to stabilizing prices in downstream industries, including packaging, construction, consumer goods, and manufacturing.
The revised duty rates are now applicable nationwide and will remain effective under the FY2026-27 tariff schedule unless further amendments are announced by the government.