Pakistan’s auto sector is poised for a major breakthrough following the US decision to reduce tariffs from 29% to 19%, Commerce Minister Jam Kamal Khan said on Wednesday.
At a meeting with industry leaders, the minister announced the creation of a high-level committee including representatives from the Ministry of Commerce, FBR, and the Ministry of Industries and Production. The committee will focus on removing export bottlenecks and crafting a sustainable growth plan.
Kamal said the tariff cut gives Pakistan the lowest rate in the region and a significant edge in the US market. He called it a turning point for the auto sector, with potential to greatly expand exports of cars alongside tractors and motorcycles.
Industry stakeholders welcomed the development but called for safeguards against a flood of old imported vehicles that could hurt domestic manufacturers. They also flagged rising costs from adopting new technologies.
The minister pledged to gradually reduce auto sector tariffs over the next five years, promoting competition and innovation. “We have a real chance to make Pakistan a global auto exporter, and we intend to seize it,” he said.