Category: 1. Pakistan

  • Utility Stores Corporation closure puts 11,000 jobs on the line – Business

    Utility Stores Corporation closure puts 11,000 jobs on the line – Business

    ISLAMABAD: The National Assembly Standing Committee on Privatisation was informed on Monday that the government will ensure the payment of Rs27 billion in dues to employees and vendors of the Utility Stores Corporation (USC) in two phases following its closure.

    Chaired by Dr Muhammad Farooq Sattar, the committee was told that the closure of USC had been finalised, but safeguarding the rights of the app­roximately 11,000 workers was the government’s top priority. The committee sought a detailed breakdown of the outstanding dues to be paid to employees and vendors, which the Privatisation Commission was asked to submit at the next meeting.

    The committee was also briefed that while USC had operated profitably when subsidies were being provided, the withdrawal of these subsidies had led to operational losses. Committee members expressed serious concerns over the privatisation of USC, emphasising that continuing with the closure process despite the committee’s recommendations was highly alarming.

    In response, the Privatisation Commission’s secretary inf­ormed the committee that the due diligence process for the privatisation of Pakistan Inter­national Airlines Corporation Ltd (PIACL) had already begun, with several business houses expressing interest. The privatisation process for PIA is expected to be completed by the last quarter of 2025.

    Govt commits Rs27bn in dues clearance to employees, vendors

    The committee directed that the process be conducted transparently and asked the Privatisation Commission to present a list of members of the privatisation board at the next meeting.

    On the ongoing issue of electricity loadshedding, the committee expressed concern over the situation across the country. The committee was informed that there is no electricity shortfall, but load management is being carried out. Feeders experiencing electricity theft or excessive line losses are subjected to load management.

    The committee advised that instead of imposing load-shedding on entire feeders, electricity should be disconnected only for those areas or consumers found involved in theft or causing excessive losses.

    Additionally, the committee recommended that the Minister for Power hold regional meetings with members of the National Assembly to address public issues in their constituencies and take concrete actions to resolve them.Following a briefing on Pakistan Engineering Company (PECO), the committee instructed the government to resolve the company’s issues.

    The committee advised that efforts should first focus on restoring PECO, but if that proves unfeasible, privatisation should be considered. The committee also directed an inquiry into the irregularities during the tenure of former Managing Director Mairaj Anees Ariff and requested a detailed report on the matter.

    Published in Dawn, August 26th, 2025

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  • India shared flood warning bypassing IWT, FO confirms – Newspaper

    India shared flood warning bypassing IWT, FO confirms – Newspaper

    • Spokesperson says New Delhi relayed warning via ‘diplomatic channels’
    • Pakistan notified of high flood in held Jammu’s Tawi River that flows into Chenab

    ISLAMABAD: After India shared a flood warning with Pakistan via diplomatic channels instead of under the Indus Waters Treaty, Islamabad took exception to the move and asked New Delhi to comply with the treaty.

    The development was shared by the Foreign Office in a statement on Monday. FO Spokesperson Shahfqat Ali Khan said: “On August 24, 2025, India communicated flood warnings through diplomatic channels, rather than through the IWC as required under the IWT.”

    Under paragraph 8 of Article IV of the IWT, “each party agrees to communicate to the other party, as far in advance as practicable, any information it may have in regard to such extraordinary discharges of water from reservoirs and flood flows as may affect the other party”.

    “We reaffirm that India is obligated to fully comply with all provisions of the treaty. India’s unilateral declaration to hold the treaty in abeyance constitutes a serious violation of international law and could have significant negative consequences for peace and stability in South Asia,” Dawn.com reported.

    It reported that a communiqué on Sunday from the Indian High Commission in Islamabad notified the government of a high flood in Jammu’s Tawi River that flows into the Chenab River. At present, Chenab is at risk of high to very high flooding amid torrential rainfall across Punjab.

    Under paragraph 8 of Article IV of the IWT, “each party agrees to communicate to the other party, as far in advance as practicable, any information it may have in regard to such extraordinary discharges of water from reservoirs and flood flows as may affect the other party”.

    An Indian government source told Reuters on Monday that New Delhi had shared the warning on possible cross-border flooding on “humanitarian grounds” and not under the IWT. The Indian High Commission in Islamabad shared the warning following heavy rains in occupied Kashmir, the source said.

    India in April held the IWT in abeyance following the attack in occupied Kashmir’s Pahalgam that killed 26 — an incident New Delhi blamed on Islamabad without evidence. Pakistan termed any attempt to suspend its water share an “act of war”, noting the IWT had no provision for unilateral suspension.

    In June, Pakistan welcomed the decision by the Permanent Court of Arbitration (PCA) in The Hague to issue a “Supplemental Award of Competence” in the Indus Waters case, stating that India cannot unilaterally hold the treaty in abeyance. According to the statement by the PCA, the court found that it was not open to India to unilaterally suspend the IWT or hold it in abeyance.

    “The Court first considered the terms of the Treaty (IWT), which do not provide for the unilateral ‘abeyance’ or ‘suspension’ of the treaty; rather, according to its terms, the treaty continues in force until terminated with the mutual consent of India and Pakistan,” the press release read.

    Published in Dawn, August 26th, 2025

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  • Malicious campaign against CM’s Japan visit shameful act: Azma – Pakistan

    Malicious campaign against CM’s Japan visit shameful act: Azma – Pakistan

    LAHORE: Punjab Minister for Information and Culture, Azma Bokhari, has categorically rejected the fake list circulating on social media related to the official visit to Japan, calling it “a complete pack of lies.”

    She stated that Pakistan and Japan are entering a new and promising era of diplomatic cooperation, but unfortunately, certain anti-national elements are trying to malign this relationship with disinformation and propaganda.

    Azma Bokhari emphasized that after 25 years, for the first time, a woman Chief Minister has made a historic visit to Japan, and the malicious campaign against this milestone is nothing short of a shameful act of hostility against the country’s progress.

    Clarifying the facts, she stated that the individuals mentioned in the social media list were not part of the official government delegation. Only officially nominated delegates had their expenses covered by the government, while all others covered their own costs privately.

    She further said that those pained by Pakistan’s cooperation with Japan in urban development, technology, and youth skills enhancement must accept that the nation is moving forward.

    She said, by the grace of Almighty Allah, Chief Minister Punjab Maryam Nawaz Sharif remains dedicated to the progress of the people and the province. The opposition has nothing to offer except falsehood and propaganda; they can have that ‘honor’ to themselves. Just like in the past, the envious will continue to burn in their own frustration,” Azma concluded.

    Copyright Business Recorder, 2025

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  • The Data Dichotomy & AI

    The Data Dichotomy & AI

    How do we feel about conspiracy theories? As a nation, we seem quite fond of them. They have rescued many a weary family gathering by dividing drawing rooms into passionate camps. Remember the COVID-era favourite? The ‘Amreekan’ government injecting Pakistanis with microchips under the guise of vaccines.

    Ready for a new one?

    Our legislature recently passed the Digital Nation Act 2025. Most commentators view it through the crypto lens: legalising trading and exchanges, perhaps issuing a digital currency, possibly even holding crypto reserves to hedge the dollar. Fair enough; these possibilities feel necessary given the economic chaos of the last half-decade. But the Act itself is far more ambitious. It aims to ‘leverage the transformative power of digital technologies, responsible use of data… to accelerate sustainable economic development, improve citizen well-being, and modernise governance frameworks.’

    Crypto disrupted finance. AI, however, is reshaping everything: decision-making, automation, even human interaction. If the Act is serious about digital transformation, then AI, not merely crypto, must be central. To drive this, the Act establishes three institutions: the National Digital Commission for strategy, the Pakistan Digital Authority for execution, and an Oversight Committee for accountability. It also leans heavily on ‘data’: a National Data Strategy, data governance, data exchange layers. The message is clear: data will be regulated to realise the Act’s lofty goals. And here comes the trouble.

    Despite all the talk of data, Pakistan still lacks a comprehensive data protection law. The Pakistan Data Protection Bill 2020 came and went. The 2023 Bill remains stalled. The 2020 draft was more rights-centric, the 2023 more state-centric. Both drew inspiration from Europe’s GDPR, often called the global gold standard. Yet, without enactment, Pakistan relies on patchwork: the Electronic Crimes Act 2016, Telecom Consumer Protection Regulations 2009, and the Payments Act 2007. We are all familiar with data privacy scandals: Cambridge Analytica, Meta, Google’s settlement in the United States. Closer to home, NADRA’s leaks between 2019 and 2023. These underscore the importance of treating personal data like the digital equivalent of the home: inviolable, private, integral to one’s dignity.

    But here is the paradox: AI thrives on data. Big, messy, diverse datasets fuel learning and refinement. The larger the dataset, the better the model. Training modern AI has essentially meant scraping oceans of the internet; text, images, social media posts, usually without individual consent. Regulate too early and one throttles the very thing one hopes to grow.

    Consider the global chronology. In the United States and China, large-scale AI development surged before serious privacy laws came into force. Europe, meanwhile, embraced GDPR in 2018 and championed consent, erasure, portability rights. The GDPR approach was principled, yes, but heavy-handed. Since then, the United States has attracted billions in AI investment and trained multiple foundational models such as GPT, PaLM, and Gemini. China, too, forged ahead with its own. Europe? It has world-class researchers and papers, but far fewer foundational models to show. The link is hard to miss: regulate early, innovate late.

    This is not an argument against privacy. It is an argument about timing. Overregulation, especially before building robust digital infrastructure, can stifle experimentation and tilt the playing field towards incumbents with lawyers and cloud budgets. Pakistan’s digital ecosystem is fragile. Registries are patchy, datasets uneven, APIs scarce. Heavy data laws here would impose compliance burdens without delivering the promised benefits. The likely outcome is predictable: incumbents survive, while startups die before product market fit.

    Ronald Coase, the economist, helps clarify this. His famous theorem argued that with low transaction costs and well-defined rights, markets self-correct without heavy intervention. Overregulation, in contrast, distorts incentives and raises costs disproportionately for small players. Contrast Pakistan with the United States. The US built AI in a light-regulation era, only now tightening the screws. Europe regulated early, and lags. If Pakistan mimics Europe prematurely, it risks bearing the costs without reaping the protections.

    So why push Pakistan to regulate now? Perhaps because the global North discovered the sanctity of personal data only after feasting on it for decades. Having mined oceans of unregulated content to build AI, they now export glossy white papers urging the developing world to adopt tight regulation, effectively pulling up the ladder. The parallel with environmental regulation is instructive. The West industrialised first, polluting and profiting freely, only later discovering green principles. Now developing countries are told to cap emissions from day one. China’s rebuttal has long been simple: development first, regulation after.

    Is this a conspiracy?

    Is this the ‘Amreeka inserting microchips’ moment to stall and detract us from leveraging the full potential of digital technology? Not in the shadowy sense, but the optics are familiar. Those who broke the rules are now writing them. We are being told, only now, that data privacy is the mark of a liberal, progressive, democratic society. And at the same time, the world leaders are getting more and more transactional. The US flagged the sale of NVIDIA chips to China as a national security risk, fearing it might boost China’s AI. Yet now, by paying the US a 15% levy on those sales, NVIDIA and AMD are free to conduct business. Now that the world is getting transactional, should we and could we afford to grow a conscience?

    None of this is to argue for regulatory nihilism. Privacy matters for autonomy, dignity, and democracy. But Pakistan must be context-sensitive and innovation-aware. The prudent path is sequence, not symmetry. Begin with minimal baseline protections: breach notifications, purpose limitation, security-by-default. Create sandboxes for AI and emerging technologies. Encourage public–private data partnerships that build trust without blocking access. Invest urgently in digitising priority datasets and building consent and exchange layers. Tighten to GDPR-like obligations only after the infrastructure—the “rails”—exists. In short: regulation should follow innovation, not precede it.

    And so, we return to conspiracy theories. Imagine this: the real conspiracy is that regulation, dressed as privacy and responsibility, is the global North’s way of ensuring Pakistan never gains its full economic potential. Say that at your next Sunday brunch, and watch the drawing room erupt. For the record: I do not actually believe it is a conspiracy. But if calling it one gets us to think harder about sequencing, innovation, and sovereignty, then perhaps it is worth the drama.

    Daraab W. Furqan
    The writer is a Lawyer at Crown 1207 LLP.


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  • Islamabad High Court halts deportation of 18 Afghan nationals

    Islamabad High Court halts deportation of 18 Afghan nationals

    Islamabad [Pakistan], August 26 (ANI): The Islamabad High Court (IHC) has granted temporary relief to 18 Afghan nationals facing deportation after their Proof of Registration (PoR) cards expired, according to a report by Khaama Press.

    Chief Justice Sarfraz Dogar issued the directive in response to petitions filed by the individuals, who, as per Khaama Press, are reportedly linked to the family of the late Fazlur Rahman. Rahman had sought Pakistani citizenship in 2008 after completing the legal requirements. The ruling prevents their deportation until further orders, while notices have been issued to the Interior Ministry, the Immigration Department, and the Federal Investigation Agency.

    The order comes at a time when Pakistan is moving ahead with its “Illegal Foreigners Repatriation Plan,” under which Afghan refugees holding PoR cards that expired on June 30 were directed to leave voluntarily between August 4 and August 31. Deportations are set to begin from September 1, raising fears among refugees and rights groups.

    Human rights bodies and the UNHCR have voiced concern that forced returns could violate the principle of non-refoulement. Rights advocates warn that such measures will deeply impact Afghan families who have lived in Pakistan for decades and built strong community ties. While the IHC’s decision provides a reprieve to a small group, it underscores the broader uncertainty faced by over a million PoR cardholders who remain vulnerable to expulsion.

    In parallel with the court proceedings, authorities have intensified enforcement. Police in Peshawar, particularly in Khyber Pakhtunkhwa, have been conducting coordinated operations to identify undocumented Afghan migrants. According to Khaama Press, a significant number of migrants have been detained in recent days, with officials also claiming to have seized weapons and narcotics. The operations, carried out in areas including Kacha Garhi, Nasir Bagh, and Regi, are part of a wider crackdown on Afghans without valid documents.

    Reports further indicate that Pakistan’s campaign has accelerated in recent months, with arrests and deportations often involving house-to-house searches. The suspension of visa renewals for Afghan nationals for over a month has compounded the problem, leaving many previously legal residents undocumented and at risk of removal.

    Adding to these measures, the federal government announced on August 13 the formation of a special committee comprising police and intelligence officials to track and repatriate Afghans holding PoR cards. This committee has been tasked with gathering and sharing data across agencies to facilitate enforcement actions.

    Meanwhile, the UNHCR has expressed concern that Pakistan’s stringent policies have left thousands of Afghans homeless, with many alleging threats, coercion, and mistreatment by law enforcement agencies. Rights advocates caution that the continuation of such actions risks deepening an already severe humanitarian crisis, forcing vulnerable Afghan families into greater displacement, loss of livelihood, and insecurity. (ANI)

    (This content is sourced from a syndicated feed and is published as received. The Tribune assumes no responsibility or liability for its accuracy, completeness, or content.)


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  • US tariffs: Special incentives sought for Pakistan’s key affected sectors

    US tariffs: Special incentives sought for Pakistan’s key affected sectors

    ISLAMABAD: The Ministry of Commerce (MoC) has reportedly sought “special incentives” for the export-oriented sectors to be effected due to ad-valorem tariffs of 19 per cent imposed by the United States of America (USA), sources close to Commerce Minister told Business Recorder.

    Commerce Minister Jam Kamal Khan has sought Prime Minister Shehbaz Sharif’s support for materialization of “handholding” incentives for to be affected sectors, the sources added.

    Sharing the details, sources said the Commerce Minister has informed the Prime Minister that President USA Donald Trump in an executive order of April 2, 2025, announced national emergency by imposing a base additional ad-valorem tariff of 10 percent with effect from April 5, 2025 on imports from all trading partners and additional tariff ranging from 10 percent to 50 percent with effective from 9th April 2025, with 29 percent reciprocal tariff imposed on imports from Pakistan.

    Exports to US to face 19pc tariffs

    On the directives of Prime Minister, the Ministry of Commerce on April 4, 2025 notified a Steering Committee (headed by the Finance Minister) and a Working Group (headed by the Secretary Commerce) to analyse the reciprocal tariffs in terms of their applicability on Pakistan’s exports and develop a strategy for subsequent trade negotiations with the U.S.

    According to Commerce Minister, the base tariff of 10 percent additional ad-valorem tariffs took effect from April 5, 2025 on imports from all trading partners; however, the President of USA vide an executive order April 9, 2025 suspended implementation of additional tariff ranging from 10 percent to 50 percent on trading partners for period of 90 days, till July 9, 2025.

    After thorough deliberation and consultation with private sector, the Ministry of Commerce formulated a strategy which Pakistani team led by the Finance Minister and Secretary Commerce negotiated with the US side through multiple rounds of virtual and in-person meetings in the USA.

    As a result of successful trade negotiations, Pakistan was able to get additional ad-valorem tariffs of 29 percent reduced to 19 percent, lower than its regional competitors like Bangladesh, Vietnam and India. These announcements were made by the USA vide Presidential Executive Order of July 31, 2025.

    Further, the USA on August 6, 2025 imposed additional tariff of 25 percent on India, giving Pakistan a competitive advantage of 31 percent.

    Subsequently, on the directions of the Prime Minister, the Ministry of Commerce on August 11, 2025 held a meeting under the chairmanship of Federal Minister for Commerce and Special Assistant to the PM on Industries and Production with the leading exporters and SMEs from various sectors (including apparel and textiles, rice, salt, surgical goods, sports goods, electronics, food and agriculture, leather, and more) proposing to devise a way forward/ action plan to boost exports to the US.

    Industry representatives, while appreciating the government’s efforts in trade diplomacy, urged the government for favourable and predictable policy support aiming towards providing enabling business environment and reducing cost of manufacturing.

    In order to keep the export industries regionally competitive through consistent and favourable policy interventions and materialize the future business opportunities in the US, the Commerce Ministry has submitted the following recommendations to the Prime Minister based upon consultation with the export sectors.

    For the Finance Division, authorization to the Ministry of Commerce for sanctioning of balance amount of Rs. 12 billion in August 2025 (out of budgetary allocation of Rs 15 billion in FY 2025-26) for clearance of verified DLTL claims on fist-in-fist-out (FIFO) basis by the SBP and allocation of supplementary grant of Rs. 12.32 billion for clearance of remaining verified claims under Government Support Schemes in 2nd quarter of current FY 2025-26.

    For Federal Board of Revenue (FBR): processing of future refunds within 72 hours as per Sales Tax Rules, 2006, revaluation of custom valuation of mango pulp, in consultation with the industry and withdrawal of sales tax on purchases from local manufacturers, as of June-2024 level, withdrawal of exclusions of the few products recently notified under Export Facilitation Scheme (EFS) and rationalisation of double taxation on exporters.

    For Power Division: removal of cross subsidy from industrial power tariff.

    For Petroleum Division: resolve the issue of arrears in bills of RLNG on the OGRA determination, for which industry has been asked to immediately make payments to avoid disconnections. Rationalisation of RLNG Tariff for industrial consumers, including removal of off-the-grid levy, cross subsidy and, price disparity among various consumers.

    Maritime Affairs Division: Reduction of shipping time to the USA from 48 days to 24 days.

    Commerce Ministry: Announcement of new Drawback of Local Taxes and Levies (DLTL) incentive schemes for exporters.

    Copyright Business Recorder, 2025

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  • Govt to offer Rs27b bailout to USC – The Express Tribune

    Govt to offer Rs27b bailout to USC – The Express Tribune

    1. Govt to offer Rs27b bailout to USC  The Express Tribune
    2. USC closure puts 11,000 jobs on the line  Dawn
    3. NA committee concerned at privatisation of utility stores  Dunya News
    4. PM directs protection of employees’ rights, approves dissolution of Utility Stores  Aaj English TV
    5. NA panel seeks break-up of outstanding dues for utility stores employees  Daily Times

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  • PM launches 10 million BISP digital wallets

    PM launches 10 million BISP digital wallets


    ISLAMABAD:

    Prime Minister Shehbaz Sharif on Monday launched 10 million digital wallets for Benazir Income Support Programme (BISP) beneficiaries, terming it a historic milestone in Pakistan’s journey towards transparency, financial inclusion, and a cashless economy.

    With a symbolic palm touch, the premier inaugurated the system in the presence of federal ministers, BISP leadership, and international partners, including GIZ.

    He congratulated BISP Chairperson Senator Rubina Khalid, the BISP team, and partner institutions for the “landmark decision that will safeguard genuine recipients and protect them from undue difficulties.” “The digital wallet system is in its true sense blessed by the soul of Shaheed Mohtarma Benazir Bhutto, as it empowers BISP beneficiaries with safe, transparent, and direct access to financial assistance,” the premier said.

    He emphasized that BISP remains a “great initiative for poverty alleviation and employment generation,” but stressed that continued efforts were needed to expand its impact.

    The prime minister termed the launch “a great leap towards a cashless economy.” He recalled that during Ramazan, 78 per cent of the relief package was successfully disbursed through digital channels despite skepticism and resistance from vested interests.

    “Cashless transactions are the pressing requirement of our times. They save time, end corruption, and bring efficiency, helping Pakistan progress rapidly,” he remarked.

    The prime minister revealed that he personally chaired multiple meetings on digitization despite initial “indifferent attitudes and boredom” on the issue, underlining his resolve to transform government-to-government, business-to-business, and personal transactions into digital channels.

    The prime minister concluded by paying tribute to all stakeholders SBP, IT Ministry, Pakistani banks, and development partners for their contributions. “We are not just disbursing aid, we are raising an army of architects and workers to build the nation,” he said.

    PM awards Rs2.5m each to three shepherds

    The prime minister awarded cash prizes to three shepherds from Gilgit-Baltistan (G-B) who saved around 300 people by warning of an impending glacial lake outburst in the Ghizer district. He presented cheques of Rs2.5 million each to Wasit Khan, Ansar and Muhammad Khan at the Prime Minister House in Islamabad, praising their courage and presence of mind.

    “You are the heroes of Gilgit-Baltistan,” the prime minister told them. “Because of your timely action, the entire Pakistani nation, including myself, is proud of you.”

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  • Bugti seeks consensus on NFC award

    Bugti seeks consensus on NFC award


    QUETTA:

    Balochistan Chief Minister Mir Sarfraz Bugti on Monday chaired a consultative meeting to review preparations for the forthcoming National Finance Commission (NFC) Award, emphasizing fairness, inclusivity, and consensus in the process.

    Provincial Finance Minister Mir Shoaib Nosherwani briefed the session on the province’s financial position and urgent priorities. The chief minister said consultations would be held with all political parties and subject experts, including those outside parliament, to build a unified stance for Balochistan.

    Bugti said the NFC Award must recognize the province’s unique challenges and ensure transparent distribution of resources. He described the award as an opportunity to strengthen federal harmony and foster national solidarity.

    “The aspirations of the people of Balochistan must be reflected in the award,” he noted, adding that input from economists and intellectuals would also guide the province’s case.

    The chief minister expressed hope that a fair share of resources would accelerate development and prosperity across Balochistan. He concluded that the true success of all stakeholders lay in a stronger federation and that the NFC Award should become a means of national trust and unity.

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  • Govt slaps 40% tariffs on used cars

    Govt slaps 40% tariffs on used cars


    ISLAMABAD:

    A government official said on Monday that the import of accidental cars will be banned, and a 40% new tax will be imposed at the time of opening commercial imports of used cars next month to protect the local industry, delaying any benefits to the consumers from trade liberalisation.

    But the local assemblers have claimed that despite trade liberalisation, there will not be any reduction in prices, as the government charges 30% to a whopping 61% of the total price in taxes on the locally assembled cars.

    In a policy statement during a joint meeting of the Senate standing committees of finance and industry, Joint Secretary Trade Policy Mohammad Ashfaq said that the import of accidental and low-quality vehicles would not be allowed. He said that under the understanding reached with the International Monetary Fund (IMF), there would be an additional tariff protection of 40% compared to the new vehicles from this fiscal year.

    The joint secretary further stated that the government has also not yet decided whether the special schemes for car imports would continue or end after lifting restrictions on commercial imports.

    At present, the commercial import of cars is not allowed, and cars are imported by misusing the schemes of transfer of residence, baggage, and gift. These imports meet one-fourth of the total local demand, as consumers prefer imported mildly accidental used vehicles over locally produced cars.

    The IMF has imposed a condition on Pakistan to allow the commercial import of used cars of up to five years from September and then completely lift age and other restrictions from July next year.

    Pakistan Automotive Manufacturers Association (PAMA) and Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) have started lobbying against the government and IMF decisions, and also gave presentations to the standing committee.

    In the next four years, the 40% additional import tariff would be brought to zero on the import of used and old vehicles. In the future, the import of six to eight-year-old vehicles would also be allowed. The quantity and standards would be maintained to ensure that old and used vehicles do not create environment-related problems in the country, said Ashfaq.

    Under the IMF programme, Pakistan is bound to cut its import tariffs from 20.2% to 9.7% over five years – a 52% drop, according to the joint secretary’s presentation. In the first year (FY26), the tariff rate would drop to 15.7%, cutting the protection wall by 22.3%. This will be achieved by reducing average customs duty to 11.2%, additional customs duty to 1.8%, and regulatory duty to 2.7%.

    Additional customs duties will be phased out in four years, regulatory duties in five years, and exemptions within five years. The number of slabs will shrink to four, with a top rate of 15% within five years.

    Auto sector products with 35% customs duty are covered under the Auto Policy. These duties will be phased out from July 1, 2026.

    “I do not understand what the IMF has to do with the consumers,” remarked Senator Aon Abbas, chairman of the standing committee on industry, while commenting on the IMF’s condition to open commercial imports.

    The Chief Executive Officer of Indus Motors, Ali Asghar Jamali, made the presentation on behalf of the local assemblers. He told the committee that the prices were high because of government taxes, which range from 30% to 61% of the total price of the vehicle.

    Jamali said that the tax component in the case of a small car is 30%, including Rs32,935 of the recently introduced levy on combustion engines.

    In the case of the Altis, taxes account for 44% of the vehicle price and increase to 60% in the case of the LCV pickup, he added. Against a total price of Rs18.8 million, the government charges Rs11.3 million in taxes, said Jamali.

    The SUV Fortuner’s total price is Rs24.42 million, and Rs14.8 million or 61% is the cost of taxes, revealed the chief executive.

    “Our marketing has been bad, and everyone feels that we are the bad people,” admitted Jamali after members of the committees criticised the local assemblers for charging very high prices and giving low-quality cars.

    He plainly stated that it was not the responsibility of the private sector to create jobs, as job creation is the function of the government – a statement contrary to Finance Minister Muhammad Aurangzeb’s stance that the private sector should create jobs.

    Jamali said that under the new policy, it would be lucrative for the local manufacturers to import used cars and sell them instead of manufacturing them.

    The representative of Pak-Suzuki Motors, who happens to be a Japanese national, said that “producing locally is very costly and a lot of efforts have to be made, and it is now better to stop production and easier to import and sell the cars.”

    Senator Qadir supported the government’s policy to withdraw protection, which according to him will bring efficiency and help improve safety standards.

    Jamali and the representative of Pak-Suzuki Motors admitted that compared to six safety bags, there were only two bags in locally produced cars. But both claimed that the quality of the local and imported vehicles was the same, which the committee members did not agree with.

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