Summary Pakistan and IMF agree on new auto policy to phase out duties by 4 years, reduce tariffs till 2030, allow older vehicle imports, and improve market competitiveness and transparency
ISLAMABAD (Dunya News) - The government and the International Monetary Fund (IMF) have reached an agreement on a new auto sector policy framework, which the government is set to finalize this month before submitting it to the IMF for approval.
According to official documents, the new auto policy will be presented to the federal cabinet for approval next month.
Under the policy, additional customs duty and regulatory duties will be completely phased out over the next four years. However, a gradual removal of these duties on imported vehicles has been agreed upon.
Sources in the Ministry of Industries and Production said that customs duty rates will be reduced until 2030, with the aim of lowering overall tariffs and making the import system more transparent and competitive.
Also read: Pakistan, IMF agree on 11 structural reform targets for next fiscal year
According to sources, vehicles up to seven years old will be allowed for import after the fiscal year 2027. From FY2027 onwards, additional duties will be reduced by 10 percent annually in a phased manner.
In addition, the Motor Vehicle Development Act is set to be approved by Parliament to ensure safety measures in local production.
