Pakistan moves to cut tariffs on imported phones and cars

Pakistan's federal authorities are reviewing major tariff reductions for imported consumer goods. The Federal Board of Revenue is evaluating a cut to duties on mobile phones priced up to $200, which currently face an average effective tax of about 40% and generate roughly Rs 37 billion in annual revenue. The proposed relief would lower costs for a large share of entry‑level smartphones.

At the same time, the Commerce Ministry’s National Tariff Policy proposes cutting customs duties on cars, jeeps and auto parts by 25‑50%, slashing the maximum tariff from 156% to around 74%. While the reform could reduce vehicle prices for consumers, it is projected to cut an estimated Rs 143.4 billion in government revenue and may pressure domestic auto assemblers. The measures aim to curb inflationary pressures but face IMF concerns and must be finalised before the policy deadline on June 30. No final decision has been announced.