The business community has welcomed the newly announced Automotive Industry Development and Export Plan 2026-31 framework, terming the 75 percent reduction in regulatory duties a major step toward lowering manufacturing costs and modernizing the domestic automotive sector.
Business community welcomes new auto policy
RAWALPINDI, Jul 10 (APP): The business community has welcomed the newly announced Automotive Industry Development and Export Plan 2026-31 framework, terming the 75 percent reduction in regulatory duties a major step toward lowering manufacturing costs and modernizing the domestic automotive sector.
In an exclusive interaction with APP on Friday, President Rawalpindi Chamber of Commerce and Industry Usman Shaukat said that the business community highly appreciates the government focus on affordability, localization and environmental stewardship.
He noted that the simplified tariff structure directly addresses long-standing cost pressures, while extended financing options like seven-year loan tenures with a 15 percent down payment limit will significantly improve vehicle accessibility for middle-class buyers.
However, the president emphasized that the ultimate success of the framework depends on formally taking nationwide chambers on board before and during the implementation phase.
He explained that local manufacturers require complete predictability regarding the timeline and phase-in schedules for duty cuts, along with clearly defined local content thresholds to ensure the incentives drive genuine domestic localization rather than simple import substitution.
To a question, Usman added that while the target of 30 percent new energy vehicles by 2030 is highly commendable, achieving this transition requires seamless coordination among state regulators.
“Local manufacturers are fully prepared to invest in green technologies provided that the duty-free import of critical electric vehicle components is securely protected through aligned policies. APP/395
