We are pleased to share a significant and positive development in Pakistan’s transit trade policy with Afghanistan:
✅ Removal of 10% Duty on Multiple Items
As per S.R.O.816(I)/2025 dated 17th May 2025, the Federal Board of Revenue (FBR) has officially omitted several HS codes from the list of items subject to the previously imposed 10% duty under S.R.O.1380(I)/2023. This move will reduce costs and simplify import procedures for traders operating under the Afghanistan Transit Trade Agreement.
✅ Bank Guarantee Now Optional – Insurance Accepted
According to S.R.O.817(I)/2025, the requirement of a bank guarantee under Chapter XXI, sub-chapter VII of the Customs Rules, 2001, has now been substituted. Importers may now opt to provide an insurance guarantee from an AA++ rated company instead of a bank guarantee, significantly easing financial constraints. This change brings back the older, more flexible routine and is a welcome relief to the trade community.
These changes reflect the government’s commitment to promoting regional trade and supporting the business community through progressive and trader-friendly policies.
For any assistance or further clarification, please feel free to contact us.