Duty levied to shield parts makers

The government has imposed an 11% customs duty on 13 more automobile sector items, The Express Tribune reported. The Economic Coordination Committee of the cabinet approved the move at a recent meeting, aiming to shield domestic parts makers from imports of goods now produced locally.

The affected goods include heavy vehicle tyres, wheel assemblies, windscreens, seat bases and a range of reflectors, plates and covers. The Revenue Division briefed the committee that the duty falls under Section 18 of the Customs Act, 1969, and applies to parts the Engineering Development Board has determined are now made domestically. The existing SRO already covers more than 1,200 Pakistan Customs Tariff codes, and its rates are updated from time to time on Ministry of Industries recommendations.

The government expects localisation to save foreign exchange, create jobs and open export avenues over time. A letter dated September 7, 2026 from the Ministry of Industries recommended higher duty rates on further localised parts, and a draft amended SRO was circulated to the Finance and Commerce ministries before the ECC approved the proposal.