US Tariff Cut Opens New Horizons for Pakistan’s Auto Industry: Jam Kamal Khan
ISLAMABAD – Pakistan’s auto sector is gearing up for a major boost as the United States has reduced tariffs on Pakistani vehicle exports, creating fresh opportunities for growth in the global market.
Minister of Commerce Jam Kamal Khan announced on Wednesday that the tariff rate for Pakistani auto exports to the US has been slashed from 29% to 19%, marking the lowest tariff rate in the region. This strategic move is expected to give Pakistan a substantial competitive advantage over regional players in the American automotive market.
Speaking at a meeting with key auto industry stakeholders, the minister revealed that the government is forming a high-level committee to address sector challenges and draft a long-term growth strategy. The committee will comprise representatives from the Ministry of Commerce, the Federal Board of Revenue (FBR), and the Ministry of Industries and Production.
“This agreement is a game-changer for Pakistan’s auto exports,” said Jam Kamal Khan. “Our government is committed to capitalizing on this breakthrough and ensuring the auto sector becomes a strong pillar of our economy.”
Industry Concerns and Government Response
During the session, industrialists urged the government to shield the local market from the surge of old imported vehicles, warning that it could undermine domestic manufacturing. They also voiced concerns about rising production costs driven by the adoption of new technologies.
In response, the minister assured that the government is working on a comprehensive support strategy to strengthen local manufacturers, expand export potential, and encourage innovation.
“After tractors and motorcycles, Pakistan is now ready to export cars,” he stated, outlining an ambitious plan to expand the country’s footprint in the global automotive arena.
Future Plans and Tariff Reductions
Kamal further announced that tariffs on the auto sector will be gradually reduced over the next five years, aimed at fostering healthy competition, attracting investment, and promoting technological advancement. He invited auto manufacturers to actively participate in shaping the new industrial policy, which focuses on building a competitive and dynamic market environment.
Expressing confidence in the sector’s future, the minister emphasized that the US tariff reduction has opened a pivotal moment for Pakistan’s auto industry. “We are determined to take Pakistan’s auto exports to unprecedented heights,” he said.
