Though we have celebrated 78 years of independence, our economic independence falls short with every new International Monetary Fund (IMF) programme.

Under the National Tariff Policy 2025–30, Pakistan plans to gradually flatten its customs regime by normalising commercial imports of used vehicles, liberalising trade and reducing protection for industries that failed to scale.

Under this new liberalisation programme, automakers are particularly agitated. The auto industry’s recent protests against imported used cars are justifiable, but how long can we cradle a baby that refuses to grow up?

The industry has enjoyed some of the highest effective rates of protection in the region, yet prices remain among the highest in Asia, volumes are stagnant, exports are negligible, and sales are sliding.

Car ownership, especially in Asia, is seen as a prestige symbol. It also indirectly represents consumers’ purchasing power. Pakistan, in this regard, clearly lags behind other nations.

Passenger-vehicle ownership is at only 20 cars per 1,000 people; Pakistan’s figures lag behind India at 34, Vietnam at 68 and Thailand at 275. Decades of policy shielding have yielded little; volumes remain low while prices of locally produced cars have gone through the roof.

Let’s try to understand this better with the example........

© Dawn Business