Regulatory duties on auto parts

The government of Pakistan has recently increased the regulatory duty on steel imports, auto parts and engineering products from 15% to 35% by issuing SRO 1035 in Oct 2017. To me, this is an actual threat to national revenue as it has increased input cost of these value-added sectors. The auto parts industry would eventually suffer if regulatory duties on its products aren’t withheld. 

The auto industry is governed by the Automotive Development Policy (ADP) 2016-21. Under this policy, all automotive parts manufacturers are registered with the Engineering Development Board (EDB), which governs and monitors their raw materials to safeguard against misuse of concessionary duties. 

The levy of regulatory duty is a complete contravention of the policy framework laid down in ADP and renders the auto parts industry uncompetitive against imported auto parts. Being a very keen observer of the auto industry, I would like to request the government to help the auto parts manufacturers of Pakistan, one of the largest jobs and revenue providers in the country, by ensuring reduction or zero duty on import of raw materials. 


Karachi, December 15. 

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