Karachi, November 27, 2025 – Honda Atlas Cars (Pakistan) Limited has announced that automobile manufacturers are actively negotiating with the government regarding the implementation of SRO 656, aiming to ensure uninterrupted industry operations amid newly imposed export conditions.
In its financial report for the quarter ending September 30, 2025, the company highlighted key contingencies linked to recent regulatory changes. The federal government, through SRO 2069(I)/2022 issued on December 1, 2022, introduced mandatory year-wise export targets for Original Equipment Manufacturers (OEMs) seeking concessionary customs duty benefits under SRO 656, originally issued on June 22, 2006.
Under these amendments, importers must now export a fixed percentage of their import quota each year to continue availing the reduced customs duties offered under SRO 656.
Honda Atlas Cars has legally challenged these export conditions, filing a Writ Petition before the Lahore High Court. On December 27, 2023, the court granted interim relief, directing the Engineering Development Board (EDB) to allow the company’s imports at concessionary rates. This interim order remains in effect as of September 30, 2025.
The company argued that the mandatory export criteria contradict the core intention of SRO 656, which was originally designed to promote local vehicle assembly and production rather than impose export-based restrictions. Honda also noted that other automakers are similarly engaged in discussions with the government to resolve the issue amicably and avoid any operational disruptions in the auto sector.
Honda Atlas Cars has assessed a potential customs duty exposure of Rs. 9.37 billion as of September 30, 2025. However, based on its legal counsel’s opinion, the company believes it has a strong case and expects the matter to ultimately be decided in its favor.