KARACHI: The Pakistan Japan Business Forum (PJBF) has expressed serious concern over the reported consideration of a significant reduction in import duties on Completely Built-Up (CBU) vehicles, as well as substantial reductions in duties on localised auto parts.

In a statement issued on Wednesday, PJBF has cautioned that any major change in the existing duty structure for imported vehicles and localised parts could have serious and irreversible consequences for the local automobile manufacturing sector.

It stated that, over the last four decades, Japanese and Pakistani companies have made substantial long-term investments in the automobile industry.

“A sudden and sharp reduction in CBU duties would place locally manufactured vehicles under severe pressure from imported new and used vehicles. Similarly, any major reduction in duties on localised auto parts would weaken the business case for local parts manufacturing and discourage further localisation,” it added.

PJBF further warned that if local manufacturing operations become unsustainable, investments made by Japanese and Pakistani companies in the automobile sector could be scaled down or even rolled back.

The PJBF urged the government to safeguard foreign and local investment by maintaining a balanced duty differential for localised products, while retaining the current duty structure on imported finished vehicles.

It also requested that any future policy measures concerning the automobile sector be finalised through a meaningful consultative process with relevant stakeholders, keeping in view the long-term impact on investment, employment, industrialisation, localisation, technology transfer, and foreign exchange sustainability.

Published in Dawn, June 11th, 2026