Auto sector drives Rs499bn customs duty relief

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MG News | June 12, 2026 at 07:43 PM GMT+05:00

June 12, 2026 (MLN): The automotive sector dominates Pakistan's customs duty relief architecture, drawing billions in localized concessions.

Out of a total estimated Customs Duty expenditure of Rs499.14bn for FY 2024-25, automotive players captured the absolute majority. 

Specifically, Original Equipment Manufacturers (OEMs) in the automotive sector enjoyed a massive Rs219.60bn in relief under SRO 656(1)/2006. Automotive vendors separately accumulated Rs41.70bn in benefits through SRO 655(1)/2006.

Furthermore, completely knocked-down (CKD) kits and electric vehicle-specific components pulled an additional Rs23.86bn under the Fifth Schedule Part V(B).

Combined, these automotive exemptions account for more than half of the customs revenue foregone by the national exchequer.

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