With the recent US tariff reduction opening fresh opportunities for Pakistani auto exports, Minister of Commerce Jam Kamal Khan on Wednesday unveiled plans to strengthen the sector, forming a high-level committee to resolve industry challenges.
The development came during an auto industry meeting with the commerce minister on Wednesday, read a statement.
During the meeting, the minister informed that a high-level committee, including the Ministry of Commerce, Federal Board of Revenue (FBR) and the Ministry of Industries and Production, has been formed to resolve auto industry issues.
Meanwhile, industrialists urged the government to protect the local auto sector from importing old vehicles. They said that production costs have increased due to new technology.
Kamal informed that a government strategy will be prepared for the auto sector development and exports. “After tractors and motorcycles, now cars will also be exported,” he said.
The minister was of the view that the recently announced tariff reduction agreement with the US has created new opportunities for auto exports.
The government believes that Pakistan’s exporters are poised to gain a significant competitive edge in the US market after the government successfully negotiated a reduction in reciprocal tariffs from 29% to 19%. This marks the lowest tariff rate in the region and presents a major opportunity to boost Pakistan’s exports to the United States.
Meanwhile, Kamal invited the auto industry to join the new industrial policy. He noted that healthy competition is increasing in the Pakistani auto market.
The commerce minister informed that tariffs on the auto sector would be reduced gradually in the next five years.
