Karachi, December 31, 2024 – Pakistan has announced the exemption of customs duties on 261 tariff lines for imports from D-8 countries, a move effective from January 1, 2025. This initiative is part of Pakistan’s commitment to fostering regional trade under the D-8 Preferential Trade Agreement (PTA).
The Federal Board of Revenue (FBR) has issued a statutory regulatory order (SRO 2075) detailing the gradual reduction of these duties, which will continue until 2028. This development aligns with Pakistan’s strategy to enhance economic cooperation with D-8 member states, which include Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, and Turkiye.
According to the FBR, imports from these countries must comply with the D-8 Preferential Trade Agreement Rules of Origin, 2024, as outlined in the Import Policy Order, 2020. This ensures that only eligible goods, originating from member states and adhering to the specified criteria, benefit from the reduced customs duties.
Under the provisions of Section 18C and Section 19 of the Customs Act, 1969, Pakistan has exercised its authority to implement this exemption. The FBR emphasized that in cases where the agreed customs duty rates in the D-8 trade agreement are lower than existing rates, the preferential lower rates will take precedence.
This policy adjustment is expected to stimulate trade among D-8 countries by lowering the cost of imports and fostering economic collaboration. By reducing trade barriers, Pakistan aims to strengthen ties with its D-8 counterparts and attract a wider range of goods into its markets.
Economic analysts believe this move could lead to a more competitive market environment and increased availability of goods in Pakistan. Furthermore, it signals the country’s active participation in regional trade agreements, which could pave the way for broader economic integration and mutual benefits among member states.
The phased approach to duty reductions reflects Pakistan’s commitment to a balanced implementation strategy, ensuring both compliance with international agreements and support for domestic industries during the transition period.