Pakistan Tariffs: What You Need to Know

If you’re buying or selling goods that cross Pakistan’s borders, tariffs are the first thing you’ll run into. They’re not just extra costs – they shape what’s cheap, what’s expensive, and even what people buy. In this guide we break down the basics, the latest rates, and the tricks you can use to keep costs down.

How Pakistan Calculates Tariff Rates

Pakistan follows the Harmonized System (HS) code to classify every product. Once a product gets its four‑digit HS code, the customs department applies a duty percentage that can range from 0% to 100%, though most fall between 5% and 30%. The duty is calculated on the CIF value – that’s the cost, insurance, and freight you paid to get the goods to the port.

On top of the basic duty, you might see additional charges like the Regulatory Duty (RD), Additional Customs Duty (ACD), and Sales Tax (VAT). These extra layers are meant to protect local industries or raise revenue, but they can quickly add up. For example, an imported electronic gadget could face a 10% basic duty, a 5% RD, and an 18% sales tax, pushing the total cost over 30% of the original price.

Current Key Tariff Rates and Exemptions

As of 2025, the most common tariff brackets are:

• 0–5%: Raw agricultural products, some medical equipment, and basic food items.
• 5–10%: Textiles, most consumer electronics, and automotive parts.
• 10–20%: Finished garments, furniture, and many industrial machines.
• 20%+: Luxury goods, high‑end cosmetics, and certain imported chemicals.

Pakistan also runs a list of exempted items for items that support development, like solar panels, certain medical supplies, and equipment for the textile sector. If your product qualifies, you can apply for a waiver through the Ministry of Commerce.

One practical tip: always double‑check the latest tariff schedule on the Federal Board of Revenue (FBR) website before shipping. Rates change with each budget, and a small amendment can save you thousands.

Tips to Reduce Your Tariff Burden

1. Use the correct HS code. Misclassifying a product can trigger higher duties or even penalties. A 2‑digit mistake can mean a 15% jump in cost.

2. Explore free‑trade agreements. Pakistan has FTAs with China, Malaysia, and several Gulf states. If you source from a partner country, you may qualify for zero‑duty treatment.

3. Bundle shipments. Some duties are calculated on a per‑item basis. Shipping larger quantities together can lower the overall percentage.

4. Claim duty drawbacks. If you re‑export goods within a year, you can claim back a portion of the duty paid.

5. Consider local assembly. Importing components instead of finished goods often lands you in a lower duty bracket.

Why Tariffs Matter for Everyone

For businesses, tariffs affect profit margins, pricing strategy, and competitiveness. For consumers, they shape the price you pay for everything from smartphones to fresh produce. And for the government, tariffs are a major revenue stream that funds public services.

Understanding how Pakistan tariffs work lets you plan better, avoid surprises, and even turn a cost into a strategic advantage. Stay updated, keep your paperwork tidy, and you’ll navigate the customs maze with confidence.