Commerce Minister Unveils Plans to Bolster Auto Exports

Following the recent reduction in US tariffs, which has opened new avenues for Pakistani automotive exports, Commerce Minister Jam Kamal Khan announced initiatives to strengthen the sector. A high-level committee has been established to address challenges within the industry.

This announcement followed a meeting between the Commerce Minister and representatives from the auto industry, according to a released statement.

During the meeting, the minister revealed the formation of a high-level committee, which includes members from the Ministry of Commerce, the Federal Board of Revenue (FBR), and the Ministry of Industries and Production. The committee’s mandate is to resolve issues facing the automotive industry.

Industry leaders present at the meeting urged the government to safeguard the local auto sector against the import of used vehicles, citing increased production costs due to the adoption of new technologies.

Minister Kamal shared that the government will formulate a strategy designed to foster the growth and export capabilities of the auto sector. He stated that the export of cars will now be pursued, following successes with tractors and motorcycles.

The minister emphasized that the recently negotiated tariff reduction agreement with the US presents significant export opportunities for the automotive industry.

The government anticipates that Pakistani exporters will gain a considerable competitive advantage in the US market. This follows the successful negotiation of reduced reciprocal tariffs, decreasing from 29% to 19%, marking the lowest tariff rate in the region and representing a considerable opportunity to elevate Pakistan’s exports to the United States.

Kamal also invited the auto industry to participate in the development of the new industrial policy, highlighting the increasing levels of competition within Pakistan’s automotive market.

The Commerce Minister also conveyed that tariffs affecting the auto sector would undergo a phased reduction over the next five years.