In the newly released 2026-2027 federal budget, Pakistan announced a landmark policy: the sales tax on sanitary napkins and other menstrual hygiene products will be cut from 18% to zero, a historic move to ease local period poverty.

Data from UNICEF shows only about 10% of Pakistani women have access to commercially made sanitary pads. Most local females still rely on unsafe traditional alternatives due to the high cost caused by heavy taxation. This policy adjustment unlocks massive market potential for global hygiene enterprises, especially Chinese suppliers with complete raw material supply chains.

It is worth noting that while domestic sales tax on finished menstrual products is eliminated, an approximately 25% import tariff still applies to fully imported sanitary pads. This creates differentiated business opportunities for different industry participants. Below are four core profitable directions for hygiene manufacturers and raw material exporters.

1.Mass Market Penetration: Capture First-Time Consumers With Low-Cost Basic Products

Before the tax reform, the 18% sales tax classified sanitary pads as luxury goods, limiting mass consumption demand. After the tax drops to zero, brands gain obvious room to cut retail prices.

Business Opportunity

Manufacturers can launch cost-effective, large-pack basic sanitary items to target the 90% of women who have never used commercial sanitary pads. The core goal is not competing for existing small customer groups, but to cultivate primary brand awareness among new consumers and seize the fast-growing sinking market.

2.Localized Production Cooperation: Double Cost Advantages From Zero Tax & Tariff Avoidance

Finished imported sanitary pads still face a 25% import tariff, which brings persistent high cost pressure for pure imported finished goods. However, the model of "Chinese technology, production equipment & raw materials + local assembly & manufacturing in Pakistan" enters a golden development stage.

Business Opportunity

Chinese enterprises can invest in local production lines or reach OEM & ODM partnerships with Pakistani domestic factories. This cooperation model perfectly bypasses high finished product import duties, while enjoying the bonus of zero domestic sales tax, forming unbeatable price competitiveness in the local market.

3.Explosive Demand For High-Performance, Low-Cost Hygiene Raw Materials

As local sanitary pad factories expand production capacity and new manufacturing plants launch in Pakistan, the market demand for upstream raw materials will surge sharply.

China acts as the global core supply hub for spunlace nonwoven fabric, super absorbent polymer (SAP), fluff pulp and hot melt adhesive, which means Chinese raw material exporters will be direct beneficiaries of this policy.

Business Opportunity

Pakistan has a hot, rainy climate, and local female consumers prioritize sanitary products with strong water absorption and breathability. Suppliers who provide customized low-cost, high-performance raw material solutions will gain great market advantages here. Our main products – spunlace nonwoven rolls and sanitary-grade hot melt adhesive – fully match the local market’s core demands.

4.NGO & Government Public Procurement: Open B-End & G-End Sales Channels

This zero-tax policy was strongly promoted by local social activists and human rights organizations. The Pakistani government plans to popularize menstrual hygiene supplies in schools, rural villages and other public areas in the next phase.

Business Opportunity

International organizations including UN Women and UNICEF, alongside local Pakistani non-profit institutions, are carrying out menstrual health education and material donation programs. Hygiene enterprises can connect with these NGOs, local education departments and health authorities to win large-volume public procurement orders. This method helps factories digest production capacity rapidly and build positive brand reputation across Pakistan.

Advice For Chinese Raw Material Exporters Targeting Pakistan

（1）Develop economical, high-absorbent nonwoven fabric and hot melt adhesive customized for Pakistan’s hot and humid climate.

（2）Seek long-term OEM & ODM cooperation with local Pakistani sanitary manufacturers to avoid high finished goods import tariffs.

（3）Launch entry-level, cost-effective raw material formulas to support local brands’ mass-market product lines.

（4）Establish communication with UNICEF, local women’s NGOs and government health departments to access bulk public procurement orders.