Islamabad: (RightNow) The government remains unable to resolve the deadlock on the new Auto Policy 2026-2031. Despite multiple meetings of the ministerial committee, no final decision has been reached.

The Ministry of Industry proposed a reduction of up to 52% in tariffs on imported vehicles. However, in some categories, these tariffs are up to 300% higher than the national tariff policy.

The Ministry of Industry states that higher tariffs are necessary to protect the local auto industry. A significant reduction could turn Pakistan into a market for imported finished vehicles.

A proposal to reduce customs duty on raw materials for local auto parts production from 20% to 5% is under consideration. This aims to increase employment and aid technology transfer.

It is noteworthy that the national tariff policy aims to set a maximum customs duty of 15%. The Ministry of Industry supports higher tariffs to safeguard the local auto industry.