ISLAMABAD: The auto parts manufacturing sector has voiced serious concerns over the proposed 15 percent customs duty on auto parts, warning that the move could hinder industry growth and weaken Pakistan’s competitiveness in the global market.
A high-level meeting chaired by Special Assistant to the Prime Minister Haroon Akhtar Khan was held to address tariff-related concerns of the auto sector. Attendees included representatives from the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM), the Federal Board of Revenue (FBR), the Engineering Development Board, and senior officials from the Ministries of Industries and Commerce.
During the session, Haroon Akhtar assured participants that the industry’s concerns regarding the 15 percent customs duty on auto parts would be formally raised before the Tariff Policy Board. He urged PAAPAM to provide a comprehensive analysis of the protection levels needed to ensure the industry remains competitive and sustainable.
In line with Prime Minister Shehbaz Sharif’s policy, industries that show measurable productivity gains will be incentivized to foster sector-wide improvements. However, manufacturers reiterated that the new duty could significantly undermine progress and long-term development.
The government pledged continued dialogue, with Haroon Akhtar instructing PAAPAM to submit detailed reports for review in the next meeting, reinforcing the administration’s commitment to collaborative policymaking and sectoral advancement.