NTP panel’s decision: All auto & future policies will be placed before TPB

ISLAMABAD: The Steering Committee on the Implementation of the National Tariff Policy (2025–30), headed by the Finance Minister, has decided that the Ministry of Industries and Production (MoI&P) will present all future policies — including the Automobile Policy 2026–31, before the Tariff Policy Board (TPB), chaired by the Minister for Commerce, well-informed sources in the Commerce Ministry told Business Recorder.

The decision comes at a time when the MoI&P is engaged in consultations with the auto industry on the proposed tariff structure for the upcoming Automobile Policy 2026–31, amid reports of a deadlock between the ministry and industry stakeholders.

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According to sources, Secretary Ministry of Industries and Production Saif Anjum informed the committee that the ministry is in the process of finalizing the Automobile Policy 2026–31 and is holding extensive consultations with stakeholders to incorporate their feedback.

The MoI&P is also working on the Mobile Device Manufacturing Policy and Pakistan’s Next Generation Energy Storage Policy. Once consultations are completed, the proposed tariff structures under these policies will be presented to the Tariff Policy Board.

He further highlighted that under the National Tariff Policy (NTP) 2025–30, the simple average tariff is to be reduced to 9.7 percent. Additionally, Regulatory Duties (RDs) and Additional Customs Duties (ACDs) are to be brought down to zero percent during the policy’s implementation period. However, no provision has been made in the NTP—nor committed to the International Monetary Fund (IMF)—regarding reducing the trade-weighted average tariff to below 6 percent.

He also informed the participants that Statutory Regulatory Orders (SROs) related to the auto sector would be phased out in consultation with the industry.

During the meeting, the chair inquired whether tariffs on Electric Vehicles (EVs) would be included in the upcoming Automobile Policy. The Secretary MoI&P confirmed that EVs would be part of the policy framework.

The Special Assistant to the Prime Minister (SAPM) on Industries and Production reiterated that the NTP focuses only on reducing the simple average tariff, not the trade-weighted average tariff. The government has committed to the IMF to reduce RDs in the auto sector to 80 percent, whereas the NTP requires their complete elimination by 2030 across all tariff lines.

The issue of maintaining flexibility in adjusting ACDs and RDs was also discussed during the fifth TPB meeting. Members were of the view that limited flexibility should be retained to protect distressed industries, while still adhering to IMF commitments and the broader objectives of the NTP.

Dr. Ijaz Nabi observed that the IMF is primarily concerned with revenue targets rather than export competitiveness, stressing that NTP targets must be met. He also suggested that the MoI&P should broaden consultations to include stakeholders from across the supply chain, rather than focusing solely on manufacturers.

The Minister for National Food Security and Research emphasized the need to consider both short-term and long-term implications of tariff rationalization and its impact on stakeholders before finalizing policy decisions.

The SAPM noted that while Large-Scale Manufacturing (LSM) has recorded a 6 percent growth under the NTP, exports have declined by 8 percent. Meanwhile, the Senior Technical Advisor on Commerce pointed out that the impact of tariff rationalization on exports is gradual and cannot be assessed over a short period such as nine months.

Copyright Business Recorder, 2026