The government plans to introduce anti-dumping measures under the upcoming Auto Industry Development and Export Policy (AIDEP) to prevent Pakistan from becoming a destination for low-priced imported vehicles while protecting domestic manufacturing and employment.
According to policy documents, authorities believe an influx of cheap imported vehicles could undermine local production and threaten nearly 2.5 million jobs across Pakistan’s automotive value chain.
The proposed policy envisages a gradual and carefully managed reduction in import tariffs while retaining significant protection for completely built-up (CBU) vehicles. Import duties on fully assembled vehicles are expected to remain within a 40% to 75% range, which the government says is broadly consistent with tariff structures in major automobile-producing economies.
The policy also places strong emphasis on localization. Automakers that increase local production of parts and components will qualify for incentives, while companies that fail to meet localization targets will not be eligible for preferential treatment or government support.
Officials say the new framework is designed to encourage long-term investment in Pakistan’s automotive sector, with incentives reserved for manufacturers that establish production capacity and expand local value addition rather than relying on imports.
