Auto Import Bill Exposes Localization Claims by Automakers

After an increase of 79%, imports of CKD/SKD kits for local assembly of cars have reached $468 million during the first seven months of the ongoing fiscal year in comparison to the same period last year.

Similarly, imports of CKD/SKD kits for local assembly of trucks, buses, and other heavy vehicles have witnessed an increase of 42% and stand at $163 million in the first seven months of FY 2020-21.


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During the same period, a massive increase in the auto import bill on account of imports of parts and accessories has also been witnessed as existing assemblers are rolling out new models and variants with low localization of parts.

New entrants account for the major part of the import bill who are bringing in 100% CKD/SKD kits under the incentivized Auto Development Policy (ADP) 2016-2021.


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The incentivized and concessionary regime for the new entrants is expected to extend till 2026 once the Automotive Industry Development and Export Plan (AIDEP) 2021-2026 comes into effect in July and it is hoped that they would be able to increase localization by June 2026.

Figures from the Engineering Development Board (EDB) show that 20 new investors have been accorded Greenfield status, two closed units have been restored, and $1 billion worth of investment has been attracted under the ADP 2016-21 that is set to expire in June this year.

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