Proposed AIDP 2025-30: Panel to seek PM’s guidance on tariff structure

A ministerial panel in Pakistan is seeking Prime Minister's guidance on tariff structures for the proposed Automobile & Auto Parts Manufacturing Policy (AIDP) for 2025-30, as disagreements between the Ministries of Commerce and Industries over tariffs remain unresolved, according to informed sources. Despite multiple meetings, the committee has not reached a consensus, with one official stating that both the National Tariff Policy (NTP) and AIDP frameworks cannot run concurrently.

The Ministry of Industries and Production (MoI&P) has emphasized that customs tariffs for CKD kits, raw materials, subcomponents, and assemblies fall under the Tariff Policy Board (TPB) jurisdiction, urging the government to convene an urgent TPB meeting for interim duty structures until AIDP is finalized. Power Minister's absence in Saudi Arabia and Commerce Secretary Jawad Paul's visit to Washington for a US trade deal have hindered progress on auto sector tariffs.

Pakistan's push to become a regional electric vehicle (EV) hub faces challenges due to delays in finalizing AIDP and the National Electric Vehicle (NEV) Policy 2025-30. The NEV Policy aims for EVs to constitute 30% of new vehicle sales by 2030, cut fuel imports, expand charging infrastructure, and promote local manufacturing and exports.

However, regulatory approvals, implementation frameworks, and EV charging infrastructure development delays have slowed progress. Industry stakeholders warn that uncertainty over localization requirements, export obligations, tariff regimes, and the broader auto policy is complicating investment planning for EV market participants.

The NEV Policy's targets to increase EVs, reduce fuel imports, and position Pakistan as a competitive regional EV manufacturing base hinge on coordinated implementation across government institutions.