Pakistan’s Tariff Regime: Comparative Perspective

The National Tariff Policy 2025–30 (NTP) presents Pakistan’s average tariff, including para-tariffs, as higher than those of eight comparator economies: India, Bangladesh, Sri Lanka, Nepal, Thailand, Cambodia, Indonesia, and Vietnam. This report reassesses the NTP’s international comparisons by examining Pakistan’s customs duties and para-tariffs on a consistent basis alongside those of the nine comparator economies, including Türkiye. The analysis incorporates Pakistan’s recent tariff reforms and available data for the comparator countries.

Pakistan’s average customs duties are in the middle of the study-country range. Its simple-average most-favoured-nation (MFN) tariff is 9.5%, below those of India, Bangladesh and Nepal and equal to Vietnam’s. Its trade-weighted average is 6.7%, also in the middle of the group.

Moving beyond average tariff levels, the analysis of tariff peaks shows that Pakistan’s share of high-duty tariff lines is comparable to the regional level. In 2025, 31.0% of its tariff lines carried duties above 15%, compared with the five-country South Asian average of 30.7%, placing Pakistan fourth among the ten study economies.

Pakistan compares more favourably with its peers when higher thresholds are used to define tariff peaks. A separate sensitivity analysis using common-year 2023 data places Pakistan below the South Asian study-country average at thresholds of 25%, 35% and 50%. This suggests a concentration of moderately high duties rather than an unusually large share of extreme rates compared to regional peers.

Including para-tariffs changes the comparison, but does not make Pakistan uniquely high among the selected economies. Its estimated combined simple average of tariffs and para-tariffs is 17.7%, compared with 28.1% for Bangladesh, 19.3% for Sri Lanka, 17.3% for Türkiye and 16.0% for India. Consistent treatment of these additional charges is therefore essential. Differences in data coverage, reference periods and policy changes mean these estimates remain a best-effort comparison, not a comprehensive measure of all import charges.

Overall, the data do not support the claim that Pakistan has the highest tariff levels among the economies compared. An analysis of simple average tariff rate and export as a share of GDP also show no clear correlation between the two. These findings suggest that Pakistan’s export strategy should rest on how reform would improve export competitiveness rather than on tariff reduction alone. Two broader implications are important going forward. First, tariff reform needs to sit within a broader package that strengthens exporters’ competitiveness, including improvements in energy, logistics, finance and skills. Second, amid rising protectionism, the sequencing of tariff reductions and trade negotiations deserves careful consideration. Preserving scope to offer preferential tariff concessions could help Pakistan negotiate reciprocal access to overseas markets.