ISLAMABAD: Commerce Minister Jam Kamal Khan has announced a five-year plan to gradually reduce tariffs in the auto sector, aiming to strengthen Pakistan’s automotive industry and boost exports. The move comes after a recent cut in US tariffs, creating fresh opportunities for Pakistani auto exports.
The minister told major auto industry stakeholders at a Wednesday meeting that the government’s new industrial policy will cut tariffs to promote competition, encourage innovation, and expand Pakistan’s presence in global markets.
A new high-level committee, including officials from the Ministry of Commerce, the Federal Board of Revenue (FBR), and the Ministry of Industries and Production, will work on tackling industry challenges and creating long-term growth strategies.
Kamal highlighted that the US tariff reduction agreement has brought reciprocal tariffs down from 29% to 19%, the lowest in the region, giving Pakistani exporters a strong competitive edge in the American market.
Industry leaders called on the government to protect local manufacturers from the surge of old imported vehicles and to address higher production costs caused by new technologies. Kamal assured them that the tariff cut plan will include measures to protect domestic production while boosting exports.
“After tractors and motorcycles, we will now export cars too,” he said, expressing confidence in Pakistan’s growing footprint in the global auto industry.
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