Business Desk 
Mar 27, 2025
The internet has been buzzing with reports suggesting that car prices in Pakistan are going to witness a sharp decline, owing to an agreement between the country and the International Monetary Fund (IMF).
Although, as part of the agreement, the country’s weighted average tariffs are slated to be dropped to 6% over the next five years, which is currently 10.6%, there's a catch: this tax reduction only applies to imported vehicles.
It's worth mentioning that this decrement will take place in phases over the period of five years.
While the development seems to trigger domestic automakers and drive down the prices of locally assembled vehicles in Pakistan, renowned automobile expert Suneel Sarfraz Munj refuted the likelihood of this happening.
In an interview with ARY News, Munj reflected on the broader picture behind the pricing of cars across Pakistan. He claimed that this nominal plunge in exported vehicles is not expected to take a toll on local car prices.
The implementation of the tariff cut on exotic vehicles will begin in July 2025, slowly pacing towards the goal of 6% within five years.
