US Tariff Reduction Creates Fresh Opportunities for Pakistan’s Auto Exports: Minister

With the recent reduction in US tariffs creating fresh opportunities for Pakistani auto exports, Minister of Commerce Jam Kamal Khan on Wednesday unveiled a comprehensive plan to strengthen the country’s auto sector. The minister announced the formation of a high-level committee to address industry challenges and pave the way for increased exports.

The announcement came during a meeting with key stakeholders from the auto industry, where the minister emphasized the government’s commitment to supporting the sector.

According to an official statement, the newly formed committee will include representatives from the Ministry of Commerce, the Federal Board of Revenue (FBR), and the Ministry of Industries and Production. The committee’s primary focus will be to resolve pressing issues faced by the auto industry and to develop a long-term strategy for its growth.

Kamal highlighted the significance of the recently negotiated tariff reduction agreement with the United States, which has lowered reciprocal tariffs from 29% to 19%. This reduction, the lowest in the region, is expected to give Pakistani exporters a significant competitive edge in the US market. “This marks a major opportunity to boost Pakistan’s auto exports,” the minister said, adding that the government is committed to capitalizing on this breakthrough.

During the meeting, industrialists urged the government to protect the local auto sector from the influx of old imported vehicles, which they argued could undermine domestic production. They also raised concerns about rising production costs due to the adoption of new technologies.

In response, Kamal assured stakeholders that the government is preparing a comprehensive strategy to support the development of the auto sector and enhance its export potential. “After tractors and motorcycles, now cars will also be exported,” he stated, signaling the government’s ambition to expand Pakistan’s footprint in the global auto market.

The minister also revealed plans to gradually reduce tariffs on the auto sector over the next five years, a move aimed at fostering healthy competition and encouraging innovation within the industry. He invited the auto industry to actively participate in the government’s new industrial policy, which seeks to create a more competitive and dynamic market environment.

Kamal expressed optimism about the future of Pakistan’s auto sector, noting that the recent tariff reduction agreement with the US has opened new doors for growth. “This is a pivotal moment for the industry, and we are committed to ensuring that Pakistan’s auto exports reach new heights,” he said.