RCCI urges government to engage industry stakeholders and provide policy clarity on localization
ISLAMABAD: Pakistan’s business community has welcomed the Automotive Industry Development and Export Plan 2026-31, describing the government’s decision to reduce regulatory duties by 75% as a major step towards lowering manufacturing costs, improving affordability and modernising the country’s automotive sector.
Speaking to authorities, Rawalpindi Chamber of Commerce and Industry (RCCI) President Usman Shaukat said the business community appreciated the government’s focus on affordability, localisation and environmental sustainability through the new automotive policy framework.
Lower Duties to Reduce Manufacturing Costs
Shaukat said the simplified tariff structure would help address long-standing cost pressures faced by local manufacturers while making vehicles more affordable for consumers.
He also welcomed the introduction of extended auto financing, including loan tenures of up to seven years with a maximum 15% down payment requirement, saying the measures would improve vehicle accessibility for middle-income households.
“The business community highly appreciates the government’s focus on affordability, localisation and environmental stewardship,” he said.
Industry Seeks Greater Consultation
Despite welcoming the reforms, Shaukat stressed that the success of the Automotive Industry Development and Export Plan 2026-31 would depend on meaningful consultation with chambers of commerce and industry associations across the country during both the planning and implementation stages.
He said local manufacturers require clear visibility regarding the timeline for regulatory duty reductions and well-defined localisation targets to encourage genuine domestic manufacturing rather than increased reliance on imported components.
According to Shaukat, policy certainty would enable manufacturers to make long-term investment decisions with greater confidence.
Support for Electric Vehicle Transition
Commenting on the government’s target of increasing the share of new energy vehicles to 30% by 2030, Shaukat described the objective as ambitious and achievable, provided policymakers ensure close coordination among relevant government institutions.
He said local manufacturers are prepared to invest in electric vehicle technologies if supportive policies remain consistent.
“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,” he said.
Industry representatives believe the new policy framework could strengthen Pakistan’s automotive manufacturing sector by encouraging localisation, attracting investment and supporting the transition towards cleaner transportation technologies.