Car Prices in Pakistan May Drop as Govt Revises Auto Tariffs Under IMF Plan

ISLAMABAD: Car prices in Pakistan may soon drop as the government moves to lower auto import tariffs under an IMF-backed trade liberalization plan. The new policy, expected to be approved by June, aims to reduce tariffs on automobiles, bringing the average duty down to 5.6% by 2030, making vehicles cheaper for consumers.

For years, high import tariffs have kept car prices in Pakistan at record highs, limiting consumer choices and restricting foreign competition. However, with the upcoming tariff reductions, the government seeks to create a competitive market, allowing international automobile brands to enter while compelling local manufacturers to improve their quality and efficiency.

This shift is part of Pakistan’s broader economic strategy, aligning with IMF conditions to open up trade, reduce reliance on protectionist policies, and drive economic growth. The government expects that these reforms will boost exports and contribute to a 4.6% annual GDP growth rate over the coming years.

The tariff cuts are scheduled to begin in July, marking a significant transformation in Pakistan’s automobile sector. With lower duties on imported vehicles, experts anticipate that car prices in Pakistan will drop, making cars more accessible to a larger population segment.

By 2030, the country aims to establish a thriving, globally competitive auto industry, attracting international car manufacturers while ensuring consumers benefit from lower prices and better options.