Islamabad — The federal government has signaled a stronger push to revive Pakistan’s auto industry, unveiling plans for tariff reforms, stricter quality controls, and incentives to boost local manufacturing.
Speaking at the Auto Parts Summit 2025, Special Assistant to the Prime Minister (SAPM) Haroon Akhtar assured industry leaders of direct government backing. “We want you to be competitive, and we will help you,” he said, emphasizing that quality checks long imposed on domestic manufacturers will now extend to imported vehicles and components as well—a move likely to level the playing field for local producers.
Policy Focus: Tariff Overhaul and Industry Revival
Akhtar outlined a broader industrial agenda that includes rehabilitating struggling sectors such as steel mills, which remain critical to auto manufacturing supply chains. The government’s strategy appears to be twofold: bring down production costs while safeguarding local producers from substandard imports.
Commerce Minister Jam Kamal Khan had earlier introduced a package of measures aimed at reversing slowing demand, including tax relief on locally assembled cars, support for parts manufacturers, and easier financing for buyers—steps designed to stimulate sales and encourage localization.
A Chance to Reset
Industry insiders see this as a pivotal moment. Pakistan’s auto sector has been struggling with reduced demand, rising costs, and heavy reliance on imported components. Analysts note that if the promised tariff reforms and enforcement policies are applied consistently, they could help manufacturers stabilize operations, attract investment, and create a more competitive domestic market.
With renewed government attention and stricter oversight on imports, the auto industry could be inching closer to long-term sustainability—if execution matches intent.
