Country profile
Pakistan
PK · PAKAs of: 7/28/2026CPEC transit country / Textile exporter
Pakistan, with about 241 million inhabitants, is an important procurement and sales market in South Asia and a major exporter of textiles and rice. The seaports Karachi, Port Qasim and Gwadar handle almost all foreign trade. Imports are subject to 18 percent Sales Tax as well as customs duties and tax advance payments; processing is carried out electronically via WeBOC and the Pakistan Single Window. The China-Pakistan Economic Corridor (CPEC) strengthens road, rail and port infrastructure. EU exporters benefit from GSP-Plus; there is no free trade agreement with Switzerland/EFTA.
Overview
Pakistan (PK) lies in South Asia on the Arabian Sea and acts as the CPEC transit country between western China, Central Asia and the Gulf, as well as a major exporter of textiles and rice. Imports are subject to 18 percent sales tax plus customs duty, additional customs duty and advance taxes; clearance runs electronically through WeBOC and the FBR's Pakistan Single Window. Almost all seaborne trade moves through Karachi Port, Port Qasim and Gwadar; air cargo runs via Karachi (KHI), Lahore (LHE) and Islamabad (ISB), complemented by dry ports such as Lahore, Faisalabad and Sialkot. Key corridors are the N-5 Karachi–Peshawar, motorways M-1/M-2, the Karakoram Highway (N-35) to China and the ML-1 main rail line (CPEC upgrade). Main exports are textiles, rice, leather goods and sporting goods; imports centre on petroleum products, machinery and chemicals, with the USA, China, the EU and the Gulf states as leading partners. EU market access runs via GSP+; there is no FTA with Switzerland/EFTA.
Mentioned countries
Customs & Import/Export
Customs authority
Federal Board of Revenue (FBR) - Pakistan CustomsImport system
Electronic processing via WeBOC (Web-Based One Customs) and the Pakistan Single Window (PSW) of the FBR / Pakistan Customs; imports by electronic Goods Declaration.
Export system
Exports are also processed via WeBOC and the Pakistan Single Window (PSW); electronic Export Goods Declaration with Pakistan Customs.
Import VAT
- Sales Tax (GST) standard rate 18 percent on the import value (since 2023)
- plus Additional Customs Duty and tax advance payments on import (FBR).
Import documents
- Goods Declaration (WeBOC/PSW)
- Commercial invoice
- Packing list
- Bill of Lading / Air Waybill
- Certificate of origin
- Letter of Credit / bank documents
Export documents
- Export Goods Declaration (WeBOC/PSW)
- Commercial invoice
- Packing list
- Bill of Lading / Air Waybill
- Certificate of origin (Form E/REX)
- E-Form (bank export proof)
Origin proofs / FTA
CPFTA phase II with China (Certificate of Origin), SAFTA, FTA with Malaysia and Sri Lanka; EU market access via GSP+ (REX). No FTA with Switzerland/EFTA.
Restricted & prohibited goods
Prohibited, among others: alcohol, pork, weapons, drugs, offensive media; licences/bans according to the Import Policy Order. Halal requirements for food.
Export controls & sanctions
Strategic export control via SECDIV under SECA-2004 with National Control Lists (revised 2025). Pakistan has been off the FATF Greylist since October 2022; no comprehensive sanctions.
Without warranty — always verify with freight forwarder/customs agent and official authorities.
Customs / Import / Export (Asia) — General process
Quick operational overview for international shipments to Asia. Product requirements, certificates, and clearance processes can vary significantly by destination.
Documents (typical)
- Commercial invoice (description, value, Incoterms)
- Packing list (weights, dimensions, packages)
- HS code / tariff classification
- Proof of origin / preference docs (where relevant)
- Depending on goods: certificates/compliance documents
Process (simplified)
- Prepare export (docs, HS code, origin)
- Import clearance in destination country (declaration, possible checks)
- Release and delivery; duties/taxes according to classification and value
Common pitfalls
- Vague description or missing HS codes → delays and clarifications
- Incoterms unclear: who clears customs/pays charges?
- Incomplete origin data → preferential treatment may not apply
- Inconsistent documents (invoice vs packing list vs shipment data)
Important: Requirements depend on goods, origin, Incoterms, value, and consignee. When in doubt, confirm with your broker/forwarder and official sources.
Official links
Note: regional/general sources. Country-specific authority links will be added iteratively.
Trade
Freight Infrastructure & Transport Network
Transport relevance
Cargo airports
- Karachi - Jinnah International (KHI)
- Lahore - Allama Iqbal International (LHE)
- Islamabad International (ISB)
Seaports / access ports
- Karachi Port (KPT)
- Port Qasim (Bin Qasim)
- Gwadar (COPHC/CPEC)
Inland ports & terminals
- Dry Port Lahore
- Dry Port Faisalabad
- Dry Port Sialkot
- Dry Port Islamabad/Rawalpindi
- Dry Port Multan
Road corridors & border crossings
- N-5 (Karachi-Peshawar)
- Karakoram Highway N-35 to China (CPEC)
- Motorways M-1/M-2
Rail corridors
- Main Line ML-1 Karachi-Lahore-Peshawar (CPEC expansion)
- Main Line ML-2
- Main Line ML-3
Top trade lanes
- Pakistan-China
- Pakistan-EU
- Pakistan-USA
- Pakistan-Gulf states (UAE/Saudi Arabia)
Risk & Operational Notes
Risk notes
Security situation varies by region (Balochistan, KP). Bureaucracy and customs checks can delay supply chains; currency volatility (PKR) and import restrictions depending on the foreign exchange situation.
Seasonal & weather risks
Summer monsoon (July to September) with flood risk (severe floods 2022); extreme summer heat in the south; winter fog in the Indus plain affects road and air traffic.
Current logistics notes
Hormuz crisis: Karachi and Port Qasim benefit as diversion and transshipment hubs — Karachi with an eight-year high in ship calls (over 2000 in FY 2025/26). No war surcharges on Pakistan routes according to the government; storage fee waivers of 25-50 percent at Karachi terminals; on Gulf routes, however, war-risk surcharges of up to approx. 4000 USD/TEU. Finance Act 2026 (from 1.7.2026): e-invoicing obligation and expanded Faceless Customs; Sales Tax remains 18 percent. No new transport strike verified. (As of 2026-07-28)
As of: 2026-07-28
Operational notes – no claim to completeness. Verify with your freight forwarder and official sources.
Public holidays
| Date | Holiday | Type | Customs closed | Transport affected | Note |
|---|---|---|---|---|---|
| Feb 5, 2026 | Kashmir Day | National | |||
| Mar 21, 2026 | Eid al-Fitr (Day 1) | National | Multi-day closures; customs, port and banking operations slow down significantly. | ||
| Mar 22, 2026 | Eid al-Fitr (Day 2) | National | |||
| Mar 23, 2026 | Pakistan Day (also Eid al-Fitr, Day 3) | National | |||
| May 1, 2026 | Labour Day | National | |||
| May 27, 2026 | Eid ul-Azha (Day 1) | National | Multi-day closures (27-29 May, five days incl. weekend); customs and port handling slow down significantly. | ||
| May 28, 2026 | Youm-e-Takbeer (also Eid ul-Azha, Day 2) | National | |||
| May 29, 2026 | Eid ul-Azha (Day 3) | National | |||
| Jun 25, 2026 | Ashura (9th Muharram) | National | Processions cause extensive road closures in cities; expect traffic disruption. | ||
| Jun 26, 2026 | Ashura (10th Muharram) | National | |||
| Aug 14, 2026 | Independence Day | National | |||
| Aug 25, 2026 | Eid Milad-un-Nabi (Prophet's Birthday) | National | |||
| Nov 9, 2026 | Allama Iqbal Day | National | |||
| Dec 25, 2026 | Quaid-e-Azam Day / Christmas | National |
Kashmir Day
Feb 5, 2026
Eid al-Fitr (Day 1)
Mar 21, 2026
Multi-day closures; customs, port and banking operations slow down significantly.
Eid al-Fitr (Day 2)
Mar 22, 2026
Pakistan Day (also Eid al-Fitr, Day 3)
Mar 23, 2026
Labour Day
May 1, 2026
Eid ul-Azha (Day 1)
May 27, 2026
Multi-day closures (27-29 May, five days incl. weekend); customs and port handling slow down significantly.
Youm-e-Takbeer (also Eid ul-Azha, Day 2)
May 28, 2026
Eid ul-Azha (Day 3)
May 29, 2026
Ashura (9th Muharram)
Jun 25, 2026
Processions cause extensive road closures in cities; expect traffic disruption.
Ashura (10th Muharram)
Jun 26, 2026
Independence Day
Aug 14, 2026
Eid Milad-un-Nabi (Prophet's Birthday)
Aug 25, 2026
Allama Iqbal Day
Nov 9, 2026
Quaid-e-Azam Day / Christmas
Dec 25, 2026
Sources: Cabinet Division Pakistan, Public Holidays 2026 · Cabinet Division Pakistan, Eid-ul-Azha Notification 20.05.2026 · Cabinet Division Pakistan, Public Holidays 2026 / Eid-ul-Azha Notification 20.05.2026 · Cabinet Division Pakistan, Public Holidays 2026 (mondabhängig) · Jährlicher Fixtermin; Cabinet-Notifikation 2027 ausstehend
Airports in this country
Popular Transit Time Routes
Latest News
Sources & Data Confidence
Official sources
- fbr.gov.pk
- psw.gov.pk
- pbs.gov.pk
- secdiv.gov.pk
Source references without warranty. For legal/tax decisions consult official authorities.
FAQ
What is the import sales tax in Pakistan?
The standard sales tax (GST) rate is 18 percent and has applied to imports since February 2023. Customs duty, additional customs duty and advance taxes are added; some goods are reduced-rated or exempt.
Which system is used for customs clearance?
Clearance is handled electronically through WeBOC (Web-Based One Customs) and the Pakistan Single Window (PSW) of the FBR / Pakistan Customs via an electronic goods declaration.
Is there a free trade agreement with Switzerland or EFTA?
No, there is no free trade agreement with Switzerland or EFTA. However, EU imports from Pakistan benefit from the GSP+ preference scheme, and Pakistan has FTAs with China (CPFTA), Malaysia and Sri Lanka.
Which seaports and airports matter for cargo?
The key seaports are Karachi Port, Port Qasim and the CPEC port of Gwadar, handling almost all foreign trade. Air cargo runs mainly through Karachi (KHI), Lahore (LHE) and Islamabad (ISB).
Which goods are prohibited or restricted?
Prohibited items include alcohol, pork, weapons, drugs and offensive media. Food is subject to halal requirements; further licensing and import restrictions follow from the Import Policy Order.
What role does the China-Pakistan Economic Corridor (CPEC) play?
CPEC links Gwadar port via roads (Karakoram Highway) and the ML-1 railway to western China and drives the expansion of ports, roads, rail and energy. This positions Pakistan as a transit hub.
What should be noted on export control and sanctions?
Pakistan operates strategic export controls through SECDIV under the SECA-2004 with national control lists (last revised 2025). Since October 2022 it is off the FATF grey list; there are no comprehensive international sanctions.
Which trade partners are important for Pakistan?
Which logistics terms are especially relevant for Pakistan?
For international shipments, these terms are a good quick start:
Next steps
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