Pakistan’s Auto Industry Faces Uncertainty Amid IMF-Backed Tariff Reforms

The article titled “A bumpy import road ahead” from Dawn discusses the challenges facing Pakistan’s auto industry amid rising imports and impending policy changes. Ahead of the FY26 budget, the sector saw robust sales of both imported and locally assembled vehicles, with significant increases in imports of completely built-up (CBU) units and completely/semi-knocked-down (CKD/SKD) kits. However, the International Monetary Fund’s (IMF) tariff rationalisation plan, including cuts in tariffs and an increase in the age limit for used car imports from three to five years, threatens to undermine local manufacturing. Industry experts warn that these measures could lead to job losses exceeding 500,000 and harm the country’s manufacturing base. The government is urged to implement a balanced tariff structure that supports fair competition and promotes localisation.