Islamabad 13 August: Pakistan’s auto industry is gearing up for a significant boost in exports after the United States slashed reciprocal tariffs from 29% to 19%, the lowest in the region.
Pakistan’s auto industry is set for a major export boost following the recent reduction in US tariffs, as Minister of Commerce Jam Kamal Khan on Wednesday announced a comprehensive plan to strengthen the sector and expand its global footprint.
Speaking at a meeting with leading auto industry stakeholders, Kamal revealed the formation of a high-level committee tasked with addressing key industry challenges and developing a long-term growth strategy.
The committee will include representatives from the Ministry of Commerce, Federal Board of Revenue (FBR), and the Ministry of Industries and Production.
The minister underscored the significance of the recently negotiated tariff cut with the United States, which reduced reciprocal tariffs from 29% to 19% — the lowest in the region.
“This historic agreement positions Pakistan as a competitive player in the US auto market,” Kamal said, calling it a “pivotal moment” for the country’s exporters.
The tariff reduction is expected to enhance the export potential of Pakistani cars, tractors, and motorcycles, with the minister expressing confidence that local manufacturers will seize the opportunity. “After tractors and motorcycles, now cars will also be exported,” he added.
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During the meeting, industry representatives urged the government to protect domestic manufacturers from the influx of used imported vehicles, warning that such imports could harm local production. They also flagged rising production costs linked to the adoption of new technologies.
In response, Kamal assured stakeholders of government support, outlining plans for gradual tariff reductions over the next five years to foster healthy competition and drive innovation. He invited auto manufacturers to actively participate in the government’s new industrial policy, aimed at creating a competitive and sustainable market environment.
Kamal concluded by stressing that the government is committed to maximizing the benefits of the US tariff cut, ensuring that Pakistan’s auto exports achieve record growth in the coming years.
