Pakistan’s automobile industry has entered one of its most uncertain phases in over a decade. As part of the government’s tariff rationalisation commitments under the International Monetary Fund (IMF) programme, the protective gap between imported completely built-up (CBU) vehicles and locally assembled completely knocked-down (CKD) vehicles has been sharply reduced to just about 15 percentage points. While the objective is to liberalise trade and gradually expose domestic manufacturers to greater competition, the industry argues that the reform has fundamentally altered the economics of local vehicle assembly. “This has narrowed the protection available to local manufacturers who invested under two previous auto policies (of 2016-21 and 2021-26),” notes the chief financial officer (CFO) of a car company, refusing to give…

Source: Dawn – Latest News

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