Commerce Minister Jam Kamal Khan has announced a comprehensive auto sector tariff reduction plan aimed at strengthening the country’s automotive industry and boosting exports. The initiative, unveiled on Wednesday, follows a recent cut in US tariffs that has opened new opportunities for Pakistani auto exports.
Five-Year Tariff Cut Roadmap
Speaking at a meeting with key auto industry stakeholders, the minister revealed that tariffs on the auto sector will be gradually reduced over the next five years. The decision, part of the government’s new industrial policy, is intended to promote competition, encourage innovation, and enhance the industry’s global presence.
The newly formed high-level committee, including representatives from the Ministry of Commerce, Federal Board of Revenue (FBR), and Ministry of Industries and Production, will address industry challenges and develop long-term growth strategies.
Opportunities in the US Market
Kamal emphasized the significance of the US tariff reduction agreement, which lowers reciprocal tariffs from 29% to 19%, the lowest in the region. He said this gives Pakistani exporters a competitive edge in the US market.
Industry representatives urged the government to protect local manufacturers from the influx of old imported vehicles and address rising production costs due to new technologies. In response, Kamal assured that the auto sector tariff reduction plan will be coupled with measures to safeguard domestic production and expand exports.
The minister expressed optimism, stating, “After tractors and motorcycles, now cars will also be exported,” underscoring the government’s goal of expanding Pakistan’s footprint in the global auto market.