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Special Assistant to the Prime Minister on Industries and Production, Mr. Haroon Akhtar Khan, held a detailed meeting today with Mr. Danial Malik, Chief Executive Officer of Master Changan Motors, to discuss the strategic challenges facing Pakistan’s automotive industry and the potential implications of the federal budget on the sector.
The two sides focused on the importance of transitioning towards New Energy Vehicles (NEVs), especially electric vehicles, as a national priority. Mr. Malik emphasized the need for sustained policy support and industry-friendly measures to ensure a stable and growth-oriented environment.
SAPM Haroon Akhtar reaffirmed the Government of Pakistan’s commitment to implementing a sustainable and modern auto policy aligned with global trends. He announced that the National Electric Vehicle (EV) Policy will soon be unveiled.
“The Prime Minister envisions Pakistan’s auto industry becoming globally competitive,” said Mr. Haroon Akhtar. “Our upcoming EV policy will provide a comprehensive framework for infrastructure development, investment incentives, and policy facilitation.”
He further added that, in line with the Prime Minister’s vision, special incentives will be offered to promote the adoption of electric vehicles in the country, supporting long-term industrial growth and environmental sustainability.
Suzuki CEO Warns Against Tax Hike on Small Cars
Later in the day, SAPM Haroon Akhtar Khan also met with Mr. Hiroshi Kawamura, Managing Director of Suzuki Motors, to review the impact of the federal budget and the proposed new tariff policy on the automotive industry.
Mr. Kawamura voiced concerns over the proposed increase in sales tax on vehicles under 850cc from 12.5% to 18%, warning that such measures could adversely affect the automotive sector. He stated that increased tax burdens are typically passed on to consumers and could lead to higher vehicle prices, reducing affordability and dampening market demand.
“The impact of higher sales tax is always borne by customers,” Mr. Kawamura remarked.
He further cautioned that the resultant price hikes may hinder industry growth and put pressure on production.
In response, SAPM Haroon Akhtar reiterated the government’s resolve to support the auto industry, emphasizing that Prime Minister Shehbaz Sharif is deeply committed to the growth of the sector and is fully aware of the challenges it faces.
“Yes, there are challenges,” Mr. Haroon stated, “but progress demands unity and collaboration. The auto industry is a vital source of employment and local manufacturing strength.”
He assured that the Prime Minister would not allow the sector to falter and pledged continued engagement with industry stakeholders to navigate challenges and seize growth opportunities.
