Rule changed to avoid US taxes on imports.

Pakistan stops bringing in goods from countries that make people work against their will.

BY Mahnoor | 15-07-2026

ISLAMABAD:
The government has changed the Import Policy Order again to stop the use of forced labor in making products. This is to avoid possible higher taxes from Trump’s team.

Pakistan is one of 60 countries investigated by the US after the Supreme Court removed its trade penalties.

Earlier, the US Trade Representative started an investigation under a trade law from 1974 about actions and rules of 60 countries, including Pakistan, because they did not stop importing goods made by forced labor.

Pakistan’s government approved a change to its policy to ban importing goods from countries that do not follow rules against forced labor in making products.

Now the government changed the import rules again. It decided to limit imports from countries that use forced or compulsory labor.

The Economic Coordination Committee (ECC) recently agreed to add a rule to the Import Policy Order. This rule says that forced labor means what the 1930 Forced Labour Convention.

The Ministry of Commerce told the economic decision-making group that the Import and Export Control Act, 1950 gives the federal government power to ban, limit, or control the import and export of any specific goods. These bans and limits are managed through the current Import and Export Policy Orders.

The commerce ministry informed the ECC that earlier, the Ministry of Overseas Pakistanis and Human Resource Development asked for a clear legal rule to stop importing goods made partly or fully by forced labor in any country. So, this issue was handled by adding a banning rule in the Import Policy Order 2022, after the federal cabinet approved it.

The Commerce Ministry also said that the Ministry of Overseas Pakistanis has now shared that, although the law set up the necessary legal rules, they need a clear definition of forced labor and a way to enforce it effectively.

The Ministry of Overseas Pakistanis suggested more changes to the Import Policy Order 2022 to include a full definition and a strong enforcement system that would strengthen Pakistan’s promises under the International Labour Organization (ILO) agreements.

In a meeting between the Ministry of Overseas Pakistanis and the Ministry of Commerce, they agreed that the definition of forced labor should be clear enough so that the import order itself explains the ban on imports from countries that use forced labor.

Considering the Law Ministry’s comments, the Commerce Ministry asked the Economic Coordination Committee (ECC) to review and approve adding a new clause to Paragraph 2 (definitions) of the Import Policy Order.

The change to Section 2 (Definitions) was “(O) ‘Forced Labor’ for this Order means forced or compulsory work as of the Forced Labor Convention, 1930 “.

During talks, the ECC, pointing out the need for a short and standard definition of forced labor, liked the work done by the commerce, law, and overseas Pakistanis departments.

The committee looked at a short report from the Ministry of Commerce. The report was called “Changes in Import Policy Order (IPO), 2022 to follow Pakistan’s promises under International Labour Organisation (ILO) rules.” The committee said yes to the idea.

India will stop importing goods made by forced labor

India has banned the import of goods made by forced labor, the trade ministry said Tuesday. This move might help avoid new US tariffs from an investigation.

India is one of several countries facing possible 12.5% US import taxes for supposedly not banning such goods. The ministry’s Monday notice gives the government power to stop imports of goods made partly or fully by forced labor.

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