Pakistan new auto policy includes anti-dumping measures aimed at protecting the local automotive industry from a flood of cheap imported vehicles.
The federal government has decided to incorporate these safeguards to prevent the country from becoming a dumping market for foreign cars.
Policy documents state that cheap imported vehicles pose a direct threat to local manufacturing and approximately 2.5 million jobs. To manage this risk, tariffs on imported vehicles will be reduced gradually and cautiously, rather than through any sudden cuts.
The documents note that major auto-producing nations, including China and the United States, maintain protective tariffs on vehicle imports. In line with this global practice, Pakistan will keep tariffs on fully built-up vehicles in the range of 40 to 75 percent.
To promote local parts manufacturing, the policy introduces a system of targeted incentives.
Companies that localise their production in Pakistan will be eligible for these benefits, while those failing to meet localisation targets will be denied concessionary facilities.
