Medical devices, pharmaceuticals: FPCCI proposes reduction in customs duty on raw materials

KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (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.

Customs duty should be reduced from 20% to 5%, 6% additional customs duty should be reduced to zero, FPCCI President Atif Ikram Sheikh recommended.

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.

In its federal budget proposal for the year for the year 2025-26 submitted to Ministry of Commerce for its consideration and including in coming budget.

The FPCCI recommended reducing customs duty on tea imports from 11% to 5%, which is expected to lower consumer prices and encourage trade.

The FPCCI has emphasized the need to ease import costs to support various industries and economic growth.

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, the FPCCI proposed an increase in customs duty on imported printed material from 3% to 20%, as Pakistan currently imports printed material worth Rs 4 billion, 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.

Atif Ikram Sheikh said this move would stimulate the construction sector, lower project costs, and accelerate infrastructure development across the country.

The 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.

Copyright Business Recorder, 2025