Pakistan outlined an automotive policy targeting cumulative exports of 6 billion dollars over five years. Industries adviser Haroon Akhtar Khan presented export incentives, gradual tariff cuts and domestic-production requirements. The draft awaits cabinet approval, while proposed electric-vehicle tax reductions depend on International Monetary Fund consent. It also includes new safety standards and limits on advance payments.
Pakistan’s industries adviser Haroon Akhtar Khan outlined an automotive policy aimed at cumulative exports of 6 billion dollars over five years. At a 7 November news conference in Islamabad, he described an annual average of 1.2 billion dollars, compared with approximately 200 million dollars exported in the previous fiscal year. Khan said industry consultations were complete and the draft awaited federal cabinet approval.[1], [2]
The proposal offers a 5 per cent export rebate through the refund of local taxes and levies, alongside an additional 10 per cent incentive linked to improved export performance. Companies missing local-manufacturing targets would face penalties and lose export rebates. Duties on imported components, raw materials and assembly kits would be reduced gradually over five years. The draft also includes mandatory domestic-production requirements.[1]
Proposed electric-vehicle tax concessions depend on approval from the International Monetary Fund, the lender supporting Pakistan’s reform programme. The government also plans a levy on conventional vehicles to offset lost revenue, with an exemption for engine capacities of 1,000 cubic centimetres or less. The draft adds 45 safety and quality standards and would prevent manufacturers from collecting more than 20 per cent of a vehicle’s price in advance.[1]
