Pakistan, April 22 -- The government of Pakistan is preparing a new five-year auto sector policy aimed at reducing import tariffs, encouraging competition and gradually liberalising the vehicle market by 2030. Officials say the policy is being finalised in consultation with the International Monetary Fund as part of broader economic reforms under the country's ongoing financial programme.

Under the proposed framework, the weighted average tariff is expected to fall from 10.6 percent to about 9.5 percent in the upcoming budget for the fiscal year 2026-27. Authorities also plan to continue gradual reductions in the coming years so that the average tariff declines to around 7.4 percent by 2030, reflecting commitments under the national tari...