The federal government has approved higher additional customs duties on imported tyres and motorcycle parts to protect domestic manufacturers and encourage local production. The Economic Coordination Committee (ECC) approved the changes during a meeting chaired by Finance Minister Muhammad Aurangzeb on Thursday.
Under the decision, the additional customs duty on specified imported radial tyres will increase from 4% to 11%. Meanwhile, the duty on certain motorcycle parts imported by manufacturers will rise from 11% to 31%, potentially increasing costs for businesses that depend on imported components.
Government Increases Duties To Support Local Industry
The ECC approved the changes following a proposal from the Revenue Division. The government aims to make locally manufactured tyres and motorcycle parts more competitive against imported alternatives.
However, higher import duties could put pressure on businesses that rely on foreign components. Any impact on retail prices will depend on import costs, existing inventories, local alternatives and how manufacturers and sellers respond to the changes.
ECC Approves Financing Support For Small Businesses
In addition to the customs duty changes, the committee approved a financing framework developed by the State Bank of Pakistan. The initiative aims to improve access to credit for small and medium-sized enterprises, small farmers and medium-sized industries through eligible microfinance institutions and non-bank financial institutions.
Under the framework, first-loss coverage will extend to up to 20% of loans for small and medium-sized enterprises. Meanwhile, small farmers and medium-sized industries will receive coverage of up to 10% each.
The committee also approved amendments to the Credit Guarantee Trust Fund to expand its support for affordable housing finance. The fund originally supported the Prime Minister’s Mera Pakistan Mera Ghar scheme.
These measures aim to strengthen domestic manufacturing while improving financing opportunities for businesses and farmers. However, the effect of the higher duties on consumers will depend on implementation and market conditions.
For the latest updates, visit and follow The Truth International website (www.thetruthinternational.com) and subscribe to the YouTube Channel.
