Pakistan’s Ministry of Industries and Production has prepared a draft five-year auto policy that proposes a gradual reduction in import duties on vehicles as part of broader trade reforms linked to the country’s ongoing economic programme with the International Monetary Fund.
According to official sources, the policy aims to streamline the auto sector by slowly lowering customs duties on imported vehicles over a five-year period, with the goal of reducing the maximum duty rate to around 15% by the end of the plan.
The draft policy also includes proposals to strengthen vehicle safety standards and tighten the licensing framework for the automotive sector, reflecting a broader effort to modernize regulation and improve compliance.
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Officials said the final version of the policy will be shared with the IMF later this month for review and approval. Once cleared, it will be presented to the federal cabinet for formal endorsement before implementation.
The move is part of Pakistan’s ongoing commitment to structural reforms under IMF-backed programmes, particularly in the areas of trade liberalization and tariff rationalization.
Authorities believe the changes could help create a more competitive auto market while aligning domestic policy with international economic benchmarks.
