The recent reduction in US tariffs has created a major opportunity for Pakistan’s auto sector, Commerce Minister Jam Kamal Khan said on Wednesday, unveiling a comprehensive plan to strengthen exports and address industry hurdles.
Speaking at a meeting with leading auto industry stakeholders, Kamal announced the formation of a high-level committee comprising officials from the Ministry of Commerce, the Federal Board of Revenue (FBR), and the Ministry of Industries and Production. The committee will work on resolving pressing challenges and developing a long-term growth strategy.
The minister highlighted the significance of the newly negotiated tariff reduction agreement with the United States, which cuts reciprocal tariffs from 29% to 19% — the lowest in the region. He said this change would give Pakistani exporters a strong competitive advantage in the US market.
“After tractors and motorcycles, now cars will also be exported,” Kamal said, stressing the government’s aim to expand Pakistan’s global auto footprint.
Industry representatives, however, urged the government to protect local manufacturers from an influx of old imported vehicles, warning it could undermine domestic production. They also raised concerns over rising costs due to technological upgrades.
Kamal assured stakeholders that the government’s new industrial policy will encourage healthy competition and innovation while gradually reducing auto tariffs over the next five years.
“This is a pivotal moment for the industry, and we are committed to ensuring Pakistan’s auto exports reach new heights,” he concluded.
