Many Pakistani businesses import raw materials, machinery, components, and finished goods. Importing well — at the right cost, legally, and without delays — is a competitive advantage. This guide walks through the process. Procedures, duty rates, and regulations change frequently, often with each federal budget, so always confirm current rules with customs, your bank, and your clearing agent.
Step 1: Register as an Importer
You will typically need:
- A National Tax Number (NTN) and, for many businesses, sales tax registration
- A business bank account with an authorised dealer bank
- Registration on the Pakistan Single Window (PSW) — see PSW guide
- Chamber or trade association membership, where required
Some products need additional registrations or licences from regulators — for example drugs and medical devices, food products, chemicals, and telecom equipment.
Step 2: Check the Import Policy Order
The Import Policy Order (IPO) sets out which goods are prohibited, restricted, or subject to conditions — such as licences, certificates, or compliance with Pakistani standards. Before ordering anything, check whether your product is affected. Some products must meet mandatory Pakistani standards or require prior approval from the relevant ministry or authority.
Step 3: Classify Your Product
Find the correct 8-digit PCT code for your product. The code determines duties, taxes, and regulatory requirements. See HS codes explained.
Step 4: Calculate Duties and Taxes
Imports into Pakistan can attract several layers of duties and taxes, which may include:
- Customs duty
- Additional customs duty
- Regulatory duty on certain goods
- Sales tax
- Withholding income tax
- Federal excise duty on certain goods
Rates depend on the PCT code, the origin (free trade agreements may reduce duty), the importer's status, and any concessions. Rates change with budgets and statutory orders. Use the current tariff and ask your clearing agent for an estimate before ordering. See landed cost calculation.
Step 5: Arrange Payment Through Your Bank
Import payments must go through authorised banks, which process the import transaction through PSW. Payment options include letters of credit, advance payment (subject to State Bank of Pakistan rules), documentary collections, and open account in some cases. Your bank will explain current rules and documentation requirements for your transaction.
💡 Talk to your bank before you pay the supplier
Import payment rules, including limits on advance payments and required documents, are set by the State Bank of Pakistan and can change. Confirm with your bank before agreeing payment terms with a foreign supplier.
Step 6: Vet Your Supplier and Inspect Goods
Before paying, verify the supplier and consider pre-shipment inspection. See how to vet a Chinese supplier and pre-shipment inspection guide.
Step 7: Shipping and Documents
Agree an Incoterm — FOB and CFR are common for imports into Pakistan. Ensure your supplier provides a commercial invoice, packing list, bill of lading or air waybill, certificate of origin (important for FTA duty preferences), and any product-specific certificates.
Step 8: Filing the Goods Declaration and Clearance
Your clearing agent files the import Goods Declaration through PSW with supporting documents. Customs assesses the declaration, may examine goods, and determines duties and taxes. Values are checked, and customs may apply valuation rulings for certain goods. Once duties are paid and any regulatory clearances obtained, goods are released.
Common Causes of Delay
- Incorrect classification or undervaluation
- Missing certificates or regulatory approvals
- Documents that do not match the goods
- Restricted items imported without required permits
- Late filing, leading to storage and demurrage charges
Plan for Total Cost, Not Just Price
The supplier's price is only part of your cost. Freight, insurance, duties, taxes, clearing, port charges, inland transport, and finance all add up. Calculate the full landed cost before you compare suppliers. See landed cost calculation.
Frequently Asked Questions
What is needed to start importing into Pakistan?
Typically an NTN, sales tax registration where applicable, a business bank account, PSW registration, and any product-specific licences or approvals.
What is the Import Policy Order?
The Import Policy Order sets out which goods are prohibited, restricted, or subject to conditions for import into Pakistan, such as licences or compliance with standards.
How are import duties calculated in Pakistan?
Duties and taxes depend on the PCT code, origin, and applicable concessions, and can include customs duty, additional customs duty, regulatory duty, sales tax, and withholding tax. Rates change regularly.
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