Pakistan, March 24 -- Pakistan has reached an agreement with the International Monetary Fund (IMF) to reduce the country's weighted average tariffs to 6 percent over the next five years. This cut is significant, halving the current rate of 10.6 percent. The goal is to open up Pakistan's economy to more foreign competition, making it the lowest in South Asia.

As a result of this tariff reduction, car prices in Pakistan are expected to decrease. Lower import costs in the auto sector will lead to a reduction in local car prices. The new tariff rates will be implemented from July 2025, with the target of achieving a 6 percent rate by 2030.

The tariff policy is structured under two key frameworks. The National Tariff Policy aims to bring tar...