BR100 Decreased By (-0.15%)
BR30 Decreased By (-0.74%)
KSE100 Decreased By (-0.41%)
KSE30 Decreased By (-0.67%)
BECO 5.80 Decreased By ▼ -0.23 (-3.81%)
BML 58.03 Increased By ▲ 5.28 (10.01%)
BOP 33.85 Decreased By ▼ -0.40 (-1.17%)
CNERGY 8.15 Decreased By ▼ -0.01 (-0.12%)
DCL 11.77 Decreased By ▼ -0.57 (-4.62%)
FCCL 53.35 Decreased By ▼ -0.54 (-1%)
FCSC 5.40 Increased By ▲ 0.18 (3.45%)
FFL 17.89 Decreased By ▼ -0.14 (-0.78%)
FNEL 1.31 Increased By ▲ 0.01 (0.77%)
HUMNL 11.06 Increased By ▲ 0.06 (0.55%)
KEL 8.05 Decreased By ▼ -0.06 (-0.74%)
KOSM 5.45 Increased By ▲ 0.07 (1.3%)
MLCF 87.19 Decreased By ▼ -0.86 (-0.98%)
NBP 184.60 Decreased By ▼ -1.88 (-1.01%)
PACE 11.62 Increased By ▲ 0.90 (8.4%)
PAEL 40.31 Increased By ▲ 0.37 (0.93%)
PIAHCLA 26.10 Decreased By ▼ -0.07 (-0.27%)
PIBTL 17.09 Decreased By ▼ -0.23 (-1.33%)
PPL 228.40 Decreased By ▼ -4.38 (-1.88%)
PRL 34.59 Decreased By ▼ -0.36 (-1.03%)
PTC 67.35 Decreased By ▼ -0.21 (-0.31%)
SEARL 91.00 Increased By ▲ 0.07 (0.08%)
SSGC 26.90 Decreased By ▼ -0.27 (-0.99%)
TELE 8.53 Decreased By ▼ -0.04 (-0.47%)
THCCL 66.14 Increased By ▲ 6.01 (10%)
TPLP 9.29 Increased By ▲ 0.53 (6.05%)
TREET 24.59 Increased By ▲ 0.05 (0.2%)
TRG 71.69 Decreased By ▼ -0.06 (-0.08%)
WAVES 10.98 Increased By ▲ 1.00 (10.02%)
WTL 1.28 Increased By ▲ 0.02 (1.59%)

LAHORE: Pakistan’s local auto industry is facing a severe crisis as the government moves toward liberalizing the import of used vehicles, a policy shift that industry stakeholders warn could accelerate deindustrialization and undermine decades of investment.

The sector, which represents 13 world-leading brands supports 1.5 million jobs and involves nearly 1,200 auto parts manufacturers. With an estimated US$ 5 billion invested in tooling, facilities, and technology transfer, Pakistan is among just 16 countries worldwide manufacturing all four vehicle segments cars, trucks, buses, tractors, and motorcycles, industry sources said.

Under the National Tariff Policy, the government is pursuing trade liberalization in line with IMF and World Bank commitments. Although the auto sector was exempted from such measures until June 30, 2026 under the Auto Industry Development and Export Policy (AIDEP 2021–26), recent communications suggest drastic tariff reductions for imported cars. Customs duties may be slashed from 100%–50% to a flat 15%, while regulatory and additional duties are set to be phased out over the next five years, the sources said.

PAAPAM’s sources warned that these measures will destroy three decades of industrial development, leading to mass unemployment, capital flight, and a collapse of Pakistan’s auto parts ecosystem. “No CKD manufacturing country allows unrestricted used car imports. Such policies will only turn Pakistan into a dumping ground for outdated vehicles, undermine the ‘Pakistan Make’ initiative, and force companies to abandon local production,” PAAPAM sources cautioned.

Copyright Business Recorder, 2025

Comments

Comments are closed for this article.