Karachi, February 24, 2025 – The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has strongly advocated for a substantial reduction in customs duties in the upcoming budget 2025-26.
In its official tariff proposals submitted to the Ministry of Commerce, FPCCI has emphasized the need to ease import costs to support various industries and economic growth.
One of the key recommendations by FPCCI includes reducing customs duty on tea imports from 11% to 5%, which is expected to lower consumer prices and encourage trade. Additionally, FPCCI has proposed a reduction in customs duty on raw materials used in the manufacturing of medical devices and pharmaceuticals, aiming to enhance local production capacity and affordability.
FPCCI has also sought a reduction in the customs duty from 20% to 5%, alongside the removal of an additional 6% customs duty, to facilitate industrial growth and reduce manufacturing costs. FPCCI President Atif Ikram Sheikh stated that lowering import duties on raw materials would significantly boost the local pharmaceutical industry, allowing for more competitive pricing and increased production.
The business body further recommended a customs duty reduction on motorcycle parts from 35% to 20%, arguing that this measure would make transportation more affordable and increase industry competitiveness. FPCCI President Atif Ikram Sheikh emphasized that lowering spare parts prices would not only benefit consumers but also increase government revenue by curbing smuggling and enhancing legal trade.
To strengthen the local printing industry, FPCCI suggested keeping customs duty on paper and paperboard at 10% while eliminating retail duty. Moreover, FPCCI proposed an increase in customs duty on imported printed material from 3% to 20%, as Pakistan currently imports printed material worth 4 billion rupees, which could be produced domestically. Atif Ikram Sheikh noted that this initiative would save valuable foreign exchange and generate new employment opportunities.
Another significant proposal from FPCCI includes lifting the ban on the import of 5-year-old construction machinery and allowing the import of 10-year-old equipment. According to Atif Ikram Sheikh, this move would stimulate the construction sector, lower project costs, and accelerate infrastructure development across the country.
FPCCI remains committed to advocating policies that facilitate business growth, improve economic stability, and create employment opportunities, ensuring a progressive path for Pakistan’s industries in the coming fiscal year.