KARACHI: The local auto industry and its suppliers are facing uncertainty ahead of the FY26 budget as the International Monetary Fund (IMF) is reportedly pressuring the government to rationalise auto tariffs and permit the commercial import of used cars.

The IMF believes the auto sector is highly protective, and there is a need to rationalise tariffs to improve competitiveness and efficiency to benefit consumers. There are over 40 per cent taxes and duties on locally produced vehicles.

On May 6, auto assemblers and part vendors met Special Assistant to Prime Minister (SAMP) Haroon Akhtar Khan in Islamabad and conveyed their concerns that the local industry would collapse if commercial imports of used cars are allowed and tariffs on CBU are lowered below a certain threshold.

The SAPM assured them that the government did not intend to jeopardise the industry and the investments. On the contrary, the ministry will protect the local industry and try to achieve balanced tariffs........

© Dawn Business