Karachi: The long-awaited auto policy, AIDEP 2026-31, is on the brink of realization as key government stakeholders appear to have reached a consensus. The policy still faces hurdles, requiring approval from both the Prime Minister and the International Monetary Fund (IMF) before implementation.

According to JS Global, the Ministry of Industries and Production (MoI&P) aims to protect local auto assemblers while promoting further localization within the industry. Conversely, the Ministry of Commerce is advocating for reduced tariffs on completely built units (CBUs) in accordance with the National Tariff Policy 2025-30.

The anticipated policy is likely to balance these competing interests by gradually reducing CBU tariffs while simultaneously lowering duties on completely knocked down (CKD) kits to maintain local industry competitiveness. This approach may lead to gradual tariff liberalization and increased competition, potentially impacting pricing power in the medium term.