Government promises ‘strict action’ against car dealers refusing to reduce prices of imported vehicles

In this photograph, taken on August 2, 2013, a man walks past vehicles in an auto factory that outfits cars with a bomb and bulletproof examination in Karachi. (Photo courtesy: AFP/FILE)
Short Url
Updated 13 May 2023
Follow

Government promises ‘strict action’ against car dealers refusing to reduce prices of imported vehicles

  • Pakistan’s commerce minister points the government removed additional regulatory duty on luxury items on March 31
  • Syed Naveed Qamar hopes for an IMF staff-level agreement ahead of the budget, says it will also resolve import issues

ISLAMABAD: The government announced to take “strict action” against auto dealers across Pakistan on Saturday if they refused to bring down the prices of imported cars after the removal of regulatory duty earlier this year.

Pakistan’s automobile sector suffered financial losses in recent months after the country decided to limit imports and restrict the issuance of letters of credit (LCs) amid a massive reduction in forex reserves a rapid depreciation of national currency.

Many industry stakeholders announced to scale down production, and the overall market situation led to a surge in the prices of imported vehicles.

Pakistan’s commerce minister, however, pointed out earlier in the day that additional regulatory duty on luxury goods had ended on March 31, adding that car dealers should reduce their prices.

“Federal Minister for Commerce Syed Naveed Qamar warned car dealers of strict action if prices of imported vehicles are not reduced following the removal of regulatory duty,” said a statement issued by his office.

Asked about the shortage of imported parts for local assembling, he told the media that the issue would soon be resolved since the government was expecting a staff-level agreement with the International Monetary Fund (IMF) for the resumption of a $7 billion loan facility ahead of the annual budget next month.

Pakistan has been negotiating with the international lending agency to secure another tranche of nearly $1 billion under the loan program which has been stalled since November last year.

“He highlighted that restrictions on the opening of letters of credit will be lifted after the staff-level agreement,” the statement added. “He said that with the reopening of LCs, raw materials will be easily available for export-oriented industries.”


Pakistan’s JF-17 fighter jet draws ‘strong interest’ at Riyadh defense exhibition

Updated 29 min 30 sec ago
Follow

Pakistan’s JF-17 fighter jet draws ‘strong interest’ at Riyadh defense exhibition

  • Jets showcased as Pakistan seeks to expand defense exports
  • Interest in JF-17 has heightened after May 2025 conflict with India 

ISLAMABAD: Pakistan’s JF-17 Thunder fighter jet has drawn “strong interest” at the World Defense Exhibition in Riyadh, Pakistan’s state broadcaster said on Sunday, as Islamabad promotes the aircraft to international buyers at one of the region’s largest defense industry events.

The exhibition brings together defense officials, manufacturers and military delegations from dozens of countries, offering a platform for arms exporters to showcase equipment and pursue new contracts amid heightened global and regional security concerns.

Saudi Arabia has sought to position Riyadh as a regional hub for defense and aerospace exhibitions, using such events to foster partnerships and attract international manufacturers as part of broader diversification efforts. 

Last year Islamabad signed a mutual defense pact with Riyadh and is reportedly discussing another defense agreement involving Saudi Arabia and Turkiye, although details have not been made public.

“At the World Defense Exhibition in Riyadh, the Pakistan Air Force’s JF-17 Thunder has attracted strong interest from visitors and defense experts, standing out among fighter jets displayed by the US, Saudi Arabia and other countries,” state broadcaster Pakistan Television reported.

Islamabad is attending the exhibition in the backdrop of talks with at least 13 countries, six to eight of which are in an advanced stage, for deals involving JF-17 jets made jointly with China as well as training aircraft, drones, and weapons systems, according to recent media reports. 

Interest in the JF-17 jets has been bolstered by its operational visibility following the Pakistan-India military confrontation in May 2025, which Pakistani officials and defense analysts have cited as reinforcing the aircraft’s combat credibility.

Islamabad has increasingly positioned the JF-17 as a cost-effective multirole combat aircraft for countries seeking alternatives to high-end Western fighter jets. The aircraft is already in service with several foreign air forces and remains central to Islamabad’s defense export strategy.

Countries engaged in talks include Sudan, Saudi Arabia, Indonesia, Morocco, Ethiopia, and Nigeria as well as the government in eastern Libya led by Khalifa Haftar. Discussions on JF-17s and other weapons with Bangladesh and Iraq have been publicly acknowledged by Pakistan’s military, although more details have not been made public.

Almost all the potential buyers are Muslim-majority nations, like Pakistan. Many are from the predominantly Muslim Middle East, where Pakistan has historically been a security provider.

Separately, Pakistan’s Defense Minister Khawaja Asif met his Saudi counterpart, Khalid bin Salman bin Abdulaziz Al Saud, at the sidelines of the event. 

Asif congratulated the Saudi leadership and the defense minister on the “successful and splendid” organization of the World Defense Show, state broadcaster Radio Pakistan reported. 

“He described this global defense event as an important milestone in promoting defense cooperation in the region,” Radio Pakistan said.