ISLAMABAD: The government remains deadlocked over the new Auto Policy as the Ministry of Industries has proposed a 52% reduction in protective tariffs on imported vehicles by 2030, but the suggested rates are still up to 300% higher than the National Tariff Policy approved by the federal cabinet.
According to sources, the ministerial committee formed to review the draft Auto and Auto Parts Policy for 2026-2031 has held several meetings in recent days, including one on Thursday, but failed to reach a final agreement.
The committee is headed by Federal Minister for Energy Sardar Awais Leghari and also includes foreign experts. Officials said the Ministry of Industries presented revised tariff proposals showing flexibility compared to its earlier stance.
However, even excluding Federal Excise Duty, the proposed customs duties remain far above the rates set in the National Tariff Policy. Under the National Tariff Policy, the maximum customs duty by 2030 should be 15%. But the Ministry of Industries has proposed keeping customs duty at 60% for vehicles between 1501cc and 1800cc.
This is 300% higher than the national policy and 34% lower than the current rate. Speaking to The Express Tribune, Federal Minister Sardar Awais Leghari said that implementation of the National Tariff Policy is extremely important.
However, he added that energy prices, taxes and other competitive factors also need to be considered. He noted that tariffs are only one component, while standardization, fulfilling contractual obligations, and reducing prices for consumers are also key objectives of the new policy.
The dispute highlights the ongoing challenge of balancing protection for the local auto industry with commitments to tariff rationalization under the broader economic reform agenda.
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