Key Takeaways
- The federal government will impose penalties on car manufacturers and Tier-1 auto parts companies for missing export targets.
- A new 5-year policy includes a Duty and Tax Remission for Exporters scheme to incentivize incremental exports.
- The policy aims to shift Pakistan’s auto industry towards greater international trade.
The federal government has announced plans to penalize automobile manufacturers and Tier-1 auto parts companies for failing to meet mandatory export targets under the new 5-year Auto policy, according to the official draft available with ProPakistani.
Under the proposed policy, companies that do not meet their export targets will face significant penalties, as outlined in the draft.
To support exporters, the government plans to introduce a Duty and Tax Remission for Exporters (DLTL) scheme, offering 5 percent baseline compensation and an additional 10 percent on incremental exports.
An Export Facilitation Council will be established to oversee export targets, market development, and international trade promotion, ensuring a structured approach to achieving the policy’s objectives.
The policy also includes a Vendor Upgradation and Technology Transfer Programme aimed at strengthening local auto parts manufacturers and developing industrial clusters.
The measures are expected to help Pakistan’s auto industry move from a predominantly domestic market to a more export-oriented one, enhancing its global competitiveness.
The draft policy will now be submitted to the Economic Coordination Committee of the federal cabinet for approval, marking a significant step towards implementing these changes.
