Report by Engineering Post
The federal government has recently issued directions to three major Japanese car assemblers to increase their export activities.
These included Indus Motor Company (Toyota), Honda Atlas cars Pvt Ltd, and Pak Suzuki Motors Limited.
These directions have been issued under the Auto Industry development and Export Policy 2021-26 which enforces a gradual increase in export obligations for automobile manufacturers in Pakistan setting targets requiring them to reach 10 percent of their total imports by 2025-26. This policy alongside Pakistan’s adherence to the United Nations Economic Commission WP-29 Vehicle Regulations which aim at boosting local automotive industry’s export capacity.
According to some reports, the Japanese Government have formally expressed its concerns through channels including Pakistan’s World Trade Organization (WTO) and Tokyo missions and its Commerce and industries Ministries pointing that the forced export policy amounted to an infringement on World Trade Organization agreements.
