Automark

Today’s highly competitive and customer-focused market observed automotive sector undergo a drastic change. Though product innovation, design, and performance remain essential, in parallel customer service now ranks as a brand differentiator in building loyalty and long-term profitability. An excellent Customer service is not optional anymore—it’s a strategic requirement in this era of digital connectivity, immediate feedback, and increased consumer expectations.

A. Changed Customer Expectations
Modern buyers are not only buying a product; they are investing in a long-term brand experience. Today’s consumer is expecting quick communication, after-sales service, and customized engagement. The rapidly increasing review sites, social networks, and Internet marketplaces has empowered consumers to shape brand reputation extensively and rapidly. Consequently, negative customer service image can result in lost sales and brand damage.

B. Life Time Value (Retention)
In today’s business, retaining customers is more precious than acquiring them. Retained customers yield more profit with service visits, part replacements, upgrades, and referrals. Research indicates that increase in % of client retention will help lift earnings by 40%–50%. As a result, maintaining robust client relationships with top-shelf service will pay substantial output.

C. After-Sales Service: The Real Start
An attractive state of the art showroom experience can produce the first purchase, after-sales service quality brings buyers back. Maintenance, issue resolutions in a timely manner, and the availability of authentic parts are all key areas of after sales support. Such businesses are more likely to create word-of-mouth, better scores in terms of customer satisfaction, and loyalty to the brand.

D. Adopting Digital Tools
Technology has also transformed the way automobile companies deal with their customers. Customer Relationship Management (CRM) software, AI chatbots, mobile apps, and online feedback channels enable smooth engagement and proactive approach. Virtual service assistants, maintenance reminders, and auto-service reminders are redefining convenience and raising new standards for customer expectations.

E. Personalization Creates Loyalty
Personalization is an attitude which brings emotional connection. It goes from test driving to recalling service history and preferences. People want to feel valued not just as a transaction but as a relationship. A brand that recalls birthdays, sends customized maintenance plans, or reacts expeditiously to service issues is seen as a trusted partner.

G. Sustainability and Transparency
In this era and age where people are more aware of ethical factors, price transparency, service processes, and eco-friendly practices act to build a good brand reputation. People want firms that openly disclose the price, have no surprise charges, and promote environmental activities. Such practices of ethical customer service build more intense trust.

Conclusion
Customer service is not a supporting function within the automotive field anymore, it is a strategic pillar that fosters growth, loyalty, and brand equity. As the market shifts with electric vehicles, self-driving, and online sales channels, the companies that invest in customer-centric strategies will be the ones that succeed. In a market where there are so many choices, it is customer experience that really converts a first-timer to a perpetual advocate.

This exclusive article has been published in Automark Magazine’s May-2025 printed and digital edition. Written by Ali Kamran

Dear Readers! Having spent 23 remarkable years navigating the intricate landscape of Pakistan’s automotive industry, I’ve witnessed its evolution firsthand. From nascent assembly lines to today’s more diverse, albeit still challenging, market, one profound truth has consistently guided my perspective and, I believe, holds the ultimate key to sustainable success: The Customer as Our North Star.

In my early years, the industry often felt like a monologue. Products were conceived globally, localized minimally, and then presented to a customer base with limited options. After-sales service, while present, often felt like a necessary chore rather than a relationship-building opportunity. The focus, naturally, gravitated towards production targets, import efficiencies, and distribution logistics. However, over two decades, the Pakistani customer has matured. They are more informed, thanks to digital access; more demanding, given increased choices; and more discerning, as their aspirations rise. This shift fundamentally altered the game, slowly but surely transforming how successful automotive players operate.

In the competitive and fast-moving automotive industry of today, where product innovation, localization, and a strong dealer network are the drivers of success, there is one single principle that is that the customer has to be the absolute first point of contact in all areas of our business. This is not a department or a slogan, but a basic philosophy that must be embedded in every decision, strategy, and interaction of our automotive company. Historically, companies may have been operating from a product-push mindset: “We make great cars, and people will buy them.” Today’s smart, well-informed customers expect more. They expect solutions, experiences, and relationships. To take a “customer-first” stance requires a fundamental change of thinking throughout the entire organization, from product pushing to knowing and meeting customer needs at every touch point. It requires a deep-seated cultural change, commitment to knowing customer needs at every level, and an unhealthy fixation on delivering outstanding value and experiences.

By putting the customer at the center of all that we do, we don’t merely build cars; we build long-term relationships and a successful, sustainable business. This attitude turns companies from product-pushers into trusted partners and that’s what drives growth, loyalty, and competitiveness. Putting the customer first in every area of your operations means that every process and team is aligned to what the customer desires and values, Putting the customer first in every area of your operations is an expression of a deep alignment in an organization where every team, process, and decision is consciously aimed at knowing, anticipating, and fulfilling the needs, wants, and values of the customer. It’s about building a business where the customer is not just a transaction, but the driving force behind all that you do, in reality, getting everyone and everything aligned to what the customer needs and values means building an organization that breathes and lives for its customers. It’s about delivering a seamless, positive, and valuable experience at every touch point, building loyalty, and ultimately driving sustainable business success. It requires conscious and consistent effort, driven by leadership and embraced by every single employee. Customer satisfaction is embedded in your KPIs which mean embedding customer satisfaction in your Key Performance Indicators (KPIs) means making a commitment of substance to measuring and managing your business on how well you’re doing on customer needs and expectations.

It changes customer satisfaction from a desirable outcome to a core driver of performance and decision-making across the organization. The company listens to, learns from, and acts on customer needs consistently is making it crystal clear that “The company listens to, learns from, and acts on customer needs consistently” is describing a deeply customer-centric organization that has embedded feedback and responsiveness into its operational DNA. It’s more than just listening to customer opinions and involves a never-ending cycle of understanding, adaptation, and improvement. Here’s a breakdown of what it means: a company that actually listens, learns, and acts on customer needs consistently places the customer firmly at the very center of its operations. A never-ending cycle of feedback, analysis, and action drives a customer-centric culture and ultimately drives greater success.

The Holistic Approach: Customer-First as the Guiding Principle: By embedding this customer-first philosophy into every process and group, an automotive company in Pakistan can do more than simply sell cars to build long-term relationships, build unprecedented brand loyalty, and assure a sustainable, profitable future in a value-hungry and trust-hungry market. Ultimately, the success of our automotive business in Pakistan depends on embracing a holistic, customer-first approach. When we are talking about placing the customer first in every facet of your operations means that every process and group is deliberately aligned with what the customer wants and values.

In the Pakistani automotive market, this is not only best practice, but a strategic imperative to manage the unique challenges and unlock the immense potential of this market. By placing the customer at the center of our product development, localization initiatives, dealer network operations, and aftersales service, we can consistently exceed customer expectations, build trust, and establish a loyal customer base. A customer-first approach is the key to long-term, sustainable growth and profitability. Also, satisfied customers are likely to recommend our products and services, generating increased sales and market share. as we are well aware, in a competitive marketplace, a reputation for exceptional customer focus can be a powerful differentiator.

In the highly competitive and fast-changing automotive ecosystem of Pakistan, the old business model, which tended to focus on production quotas or short-term sales targets, is generally obsolete. Today, the long-term success of any automotive business is based on a single, unflinching principle: the customer must be the absolute first point of contact in every single aspect of our operations. Treating the customer as an afterthought, or as a simple endpoint in our value chain, is not merely a strategic error; it’s a direct recipe for stagnation and eventual collapse. This philosophy is especially important in Pakistan, a market defined by distinctive consumer requirements, changing economic conditions, and a history of difficult customer experiences.

An integrated, customer-first strategy is the only means of generating loyalty, sustainable growth, and effectively localizing. For automotive companies in Pakistan, the “customer-first” strategy is not a theoretical construct; it’s a survival and prosperity imperative. It requires a holistic, unflinching commitment to product development, localization, dealer network strategy, and after-sales service. By profoundly understanding, consistently serving, and continuously exceeding the expectations of the Pakistani customer, businesses can create invaluable loyalty, differentiate themselves in a crowded market, and create a truly resilient and future-proof automotive business.

Any compromise on this fundamental principle is, in fact, a recipe for stagnation and eventual collapse. Our product development, localization activities, dealer network strategy, and after-sales service are all essential areas that must be thought up, executed, and continuously optimized with an unflinching focus on understanding and exceeding customer needs and expectations. Treating the customer as an afterthought or as a simple endpoint in our value chain is a recipe for stagnation and eventual collapse.

The journey starts with the product itself. Our engineering and design teams need to delve deep into the aspirations, pain points, and desires of our target customer segments. This entails extensive research to determine the unmet needs, emerging trends, and changing preferences in the Pakistani market. This extends beyond fundamental demographics to consider lifestyle, usage patterns, and affordability factors. Extremely important to incorporate feedback and input from the potential customers in the design and development process through surveys, focus groups, and feedback sessions. This way, our products are absolutely synchronized with their needs and desires. Ensuring our products provide an attractive value proposition, balancing features, quality, and price point in a manner that appeals to the target market.

Our dealership network is the initial and most critical point of contact for our customers. Their experience must be seamless, informative, and positive, and we must enable our dealership staff with extensive product knowledge, world-class customer service skills, and customer rapport building abilities. Ensuring our dealerships act responsibly and transparently in all their interactions, sales or service. Locating dealerships in strategic locations to facilitate access to our target customer segment throughout Pakistan. Designing dealerships that are welcoming, comfortable, and provide customers with all the information they require making an informed decision. Our customer focus extends far beyond the point of purchase.

Excellent after-sales service is crucial in building long-term relationships and fostering brand loyalty. Building strong customer support mechanisms and actively seeking customer feedback to identify areas of improvement and address concerns in a timely manner. Offering a range of value-added services, such as extended warranties, roadside assistance, and convenient service arrangements, to enhance ownership experience.

Takeaway from this article:

If we make the customer our guiding star, our North Star which informs every decision and action, we can create a sustainable and long-lasting presence of automobiles in Pakistan. It starts and ends with understanding and serving our customers’ needs. In the competitive and dynamic environment of today’s automobile industry, the customer must be at the heart of everything: every decision, strategy, and process. From design and dealership experience to aftersales service and online interaction, everything needs to be informed by customer expectations and satisfaction. Putting the customer at the center of everything as a starting point of approach builds trust, propels loyalty, and generates long-term value. It aligns quality, service, innovation, and convenience with what matters most to the individuals we serve. Such a method not only increases operations performance but also brand reputation and business sustainability. Finally, placing the customer as our North Star drives excellence, not only in sales, but in creating meaningful, long-term relationships that drive growth and innovation in the auto industry.

This exclusive article has been published in Automark Magazine’s June-2025 printed and digital edition. Written by @muhammad-rafique

As we all know, agriculture has long been referred to as the backbone of Pakistan’s economy. However, the more accurate depiction of this reality is that agriculture and women together form the true backbone of this country. Recent statistics highlight that around 68% of women, compared to just 28% of men, are actively engaged in agriculture. Yet, despite their substantial contribution, women’s roles in this sector largely remain unrecognized and unregistered. This is due to multiple barriers, such as limited access to resources, lack of knowledge, and absence of decision-making power. The contributions of women, particularly in agriculture and livestock, often go unpaid and undervalued, reflecting a broader pattern of systemic gender inequality.

In this context, it is essential to reference a recent observance by the International Water Management Institute, which celebrated International Women’s Day under the theme “Investing in women is the key to Pakistan’s agricultural growth.” This theme resonates deeply with me, as it summarizes the undeniable truth that to achieve food security and sustainable agricultural development in Pakistan, empowering rural women economically, socially, and politically is not merely a necessity—it is a vital imperative.

True empowerment, however, will only be achieved when we collectively challenge and transform the societal norms, cultural traditions, and social regulations that continue to impede women’s rights. In many parts of rural Pakistan, women lack rights to land ownership, relegating them to a status where key decisions are made by male guardians, often leaving their contributions undervalued. This pervasive issue—where rural women are relegated to unpaid household labor—requires urgent attention and action.

According to the Food and Agriculture Organization (FAO, 2011), agriculture accounts for 21.4% of Pakistan’s GDP and contributes 45% to the overall economic growth of the country. Within this framework, the agriculture sector plays a critical role in alleviating poverty, as it is the primary source of livelihood for Pakistan’s rural poor. The sector is divided into four sub-sectors: livestock, forestry, agricultural production, and fisheries. Rural women contribute significantly to agricultural production and livestock, playing indispensable roles in planting, harvesting, and nurturing crops. Yet, despite their significant engagement, their contributions are often left unacknowledged in monetary terms.

At this juncture, it is crucial to address the ways in which we can elevate the status of rural women and all women in Pakistan. This will require the collective efforts of the government, the agricultural sector, social organizations, and both public and private institutions. Together, we must work toward advancing women’s empowerment, ensuring that every woman in Pakistan has the opportunity to rise and contribute to the nation’s growth and development.

We are all aware that the 2030 Agenda for Sustainable Development and its 17 Sustainable Development Goals (SDGs), adopted by world leaders in 2015, place women’s empowerment at the forefront of international development efforts. As defined by many researchers, empowerment is both a process and an outcome—a process through which women and other marginalized groups break free from centuries-old systems of subjugation and inequality.

Klasen (1999) highlighted the critical role of women’s empowerment in driving sustainable economic growth and reducing poverty in developing nations. In the context of Pakistan, achieving gender equality in agriculture is not just a moral imperative; it is a strategic necessity. Empowered women contribute significantly to agricultural productivity, food security, and broader socio-economic development.

The Pakistani government, political entities, and numerous non-governmental organizations (NGOs) are actively working to implement policies that support rural women. Programs such as the Gender Reform Action Plans (GRAPs) and the Benazir Income Support Program (2012) are testament to these efforts. International organizations such as CARE, WGEF, USAID, IFAD, IFPRI, and OPHI are also playing pivotal roles in improving female empowerment in agriculture.

However, as we strive toward women’s empowerment, we must acknowledge the challenges that persist—challenges that vary across different regions, customs, and traditions. Pakistan is still predominantly a male-dominated society, and women face numerous barriers, such as limited access to resources, restricted credit options, and other systemic hurdles that prevent them from realizing their full potential.

Research has shown that access to higher education and employment opportunities strengthens women’s decision-making abilities, thus contributing to their empowerment and driving societal transformation. In countries where women have been trained and educated in agriculture, their contributions have been recognized, and their status elevated to that of “agricultural workers,” paving the way for economic and social progress.

In conclusion, I strongly advocate for the initiation of short-duration training programs that target rural women, equipping them with professional skills that will enable them to add value to various agricultural sectors. These training programs could focus on fields such as Livestock Management, Crop Production, Agro-Processing and Value Addition (such as dairy products, fruits, and vegetables), Horticulture and Floriculture, Agroforestry, Aquaculture, Farm Management, Agricultural Engineering, and Rural Entrepreneurship and Microfinance.

By empowering women with the skills and knowledge necessary to thrive in these areas, we can contribute to the economic growth of the agricultural sector, reduce gender inequality, and improve the overall well-being of rural communities across Pakistan. By working together to empower women in agriculture, we pave the way for a brighter, more inclusive future.

Driving Tomorrow: Strategies for a Successful Automobile Launch in Pakistan

Introduction

Dear Reader the Pakistani automobile market, with its dynamic demographics and evolving consumer preferences, presents both immense opportunities and unique challenges. As new players aim to enter this promising landscape—or as existing players seek to introduce new models—meticulous planning, market understanding, and long-term commitment become critical for a successful launch.

From compact city cars to rugged utility vehicles, the diversity of the Pakistani terrain and consumer needs demand a strategy that is both nuanced and locally attuned. This article delves into the critical factors that new or existing automobile management teams must consider to ensure a successful brand or model launch in Pakistan, and how these initiatives can create a sustainable pull from the market.

Understanding the Pakistani Consumer

Consumer behaviour in Pakistan is influenced by a mix of socioeconomic factors, cultural values, and practical needs. Vehicles are often seen as long-term investments rather than lifestyle purchases, making reliability, affordability, and resale value essential factors.

Urban buyers prioritize fuel economy, compactness, and tech features, while rural consumers look for durability, off-road capability, and ease of maintenance. For many, the vehicle is also a status symbol—meaning aesthetics and brand prestige carry weight.

Market Research and Competitive Analysis

Launching a new automobile without solid market research is akin to driving blindfolded. Effective research includes:

– Identifying market gaps—whether in pricing, features, or service.
– Studying competitor strategies, from pricing to distribution.
– Monitoring government policies, such as duty exemptions or green vehicle incentives.

Learning from past launches—both successful and failed—can offer invaluable lessons. What resonated with Pakistani buyers, and what fell short?

Product Positioning and Differentiation

The key to market penetration lies in a clear and compelling USP (Unique Selling Proposition). Whether it’s superior mileage, innovative tech, rugged design, or affordability, new models must offer something competitors don’t.

Features like fuel-efficient engines, hybrid technology, infotainment systems, and safety features can sway decisions. However, these must be tailored to local conditions—no feature is valuable if it doesn’t address a real user need.

Pricing Strategy

In Pakistan’s price-sensitive market, pricing is more than just a number—it’s a signal of value and accessibility.

– Tiered pricing models, catering to entry-level and premium customers, can increase reach.
– Flexible financing options—such as installment plans, leasing, and interest-free loans—can attract first-time buyers.
– Clear communication on ownership cost, including maintenance and fuel economy, builds trust.

Localization and Compliance

Adapting the product to local infrastructure, climate, and driving habits is critical. Roads, fuel quality, and usage patterns in Pakistan differ widely from other markets.

Moreover, compliance with local emission norms, road safety standards, and customs regulations must be ensured from day one. Local sourcing of parts can lower costs and increase serviceability, while also aligning with government policies that favor local industry development.

Marketing and Branding Strategy

Brand identity must connect with the aspirations and values of Pakistani buyers. Emotion-driven campaigns, using cultural references and real-life stories, often perform better than generic global promotions.

– Digital marketing (particularly via YouTube, TikTok, and Facebook) is vital.
– Experiential marketing, such as roadshows and test drive events, allows potential customers to interact with the product.
– Building a trust narrative—reliability, service promise, value—reinforces credibility.

Sales and Distribution Network

A wide-reaching and responsive distribution network is a game-changer. Buyers prefer brands with accessible showrooms, service centers, and spare parts availability.

Incorporating online booking, customer service Chabot’s, and remote consultations caters to younger, tech-savvy buyers while expanding reach. A hybrid model (online + physical) ensures both coverage and convenience.

After-Sales Service and Customer Experience

In a market where word-of-mouth holds significant power, after-sales service is not just a support function—it’s a marketing tool.

Offer:
– Extended warranties
– Comprehensive service plans
– Mobile servicing in rural areas

A well-handled customer experience ensures loyalty and brand evangelism, helping new brands thrive despite heavy competition.

Creating Market Pull

Instead of pushing products onto consumers, creating market pull means inspiring desire and trust. Here’s how:

– Local testimonials from early adopters
– Community outreach programs (such as eco-drives or road safety campaigns)
– User-generated content (reviews, videos, social media stories)

This approach turns customers into ambassadors, making the brand part of the consumer’s identity.

Monitoring, Feedback, and Adaptation

Success doesn’t end at launch. The ability to listen, respond, and adapt sets sustainable brands apart.

– Use feedback loops from sales, service, and social media.
– Track regional performance to tailor strategies accordingly.
– Stay flexible—adapt pricing, improve features, and solve complaints proactively.

Conclusion

Launching a new automobile brand or model in Pakistan is not about short-term profits; it’s about building long-term trust, relevance, and community engagement. While the path is challenging, the reward is significant for those who respect the consumer, understand the market, and innovate with purpose.

For both new entrants and established players, success will depend on strategic clarity, local insight, and unwavering customer focus. Those who gear up with a deep understanding of the market will not only enter Pakistan—they’ll become part of its journey toward mobility and modernity.

This exclusive article has been published in Automark Magazine’s June-2025 printed and digital edition. Written by @Aqeel Bashir

Ahead of the 2025 edition of Automechanika Dubai, experts from, Frost and Sullivan shared the latest industry insights for the commercial vehicle market

Dubai’s allocation of US$10 billion towards infrastructure spending and Saudi Arabia’s US$267 billion in infrastructure investments have been highlighted as key contributors to industry growth.

The latest automotive advancements and regional industry updates will be showcased at Automechanika Dubai from 9 to 11 December Dubai, UAE: Automechanika Dubai returns from 9 to 11 December at the Dubai World Trade Centre and in the lead up to the event, industry

experts have emphasised that significant investments in large-scale construction and infrastructure projects are key to ensuring the growth of the GCC commercial vehicle market.

In 2024, the global commercial vehicle market experienced a downturn, with the medium and heavy-duty truck segment particularly impacted. Light commercial vehicle volumes also declined in Asian markets such as China, India, and the ASEAN countries despite strong growth in recent years.

Amid these shifts, China’s electric truck segment emerged as a standout, more than doubling sales from the previous year due to strong government support and a growing focus on sustainability.

However, according to industry experts, the GCC’s commercial vehicle market is poised for growth, driven by substantial infrastructure investments and strategic economic initiatives in key member states.

Sunny Manjani, Mobility Consultant at Frost & amp; Sullivan, said: “Dubai has earmarked US$10 billion for infrastructure spending, focusing on scaling the Emirate’s tourism economy. Meanwhile, Saudi Arabia has announced investments worth US$267 billion, and Qatar is focusing on tourism and hospitality under its Third National Development Strategy 2024-2030.”

According to Frost & Sullivan’s research, Saudi Arabia is leading the commercial vehicles industry in the Middle East, leveraging its strategic location and substantial infrastructure investments.

Manjani continued: “Current supply chain disruptions in maritime routes are creating short-term opportunities for road transportation in the region. For example, goods from Europe are currently being transported from Saudi Arabia, through the UAE, and then to Asia.”

He further noted that the Middle East is emerging as a prime destination for investment and emphasised that supportive policies and increasing trade ties with Asian partners are catalysing multisector growth across the region.

Looking at the year ahead, Frost & Sullivan’s research predicts that the non-oil economy in the Middle East will remain a key driver of economic growth, with key industries identified as manufacturing (including automotive), renewables, infrastructure, construction, tourism, artificial intelligence, and fintech.

In the UAE, a resilient non-oil economy performance will push GDP growth to 5.8% in 2025, up from 4% in 2024, while investments in Saudi’s non-oil segments including, tourism, technology, infrastructure,

and renewables, will see real GDP growth reach 4.8% in 2025. Both scenarios have the potential to positively impact the commercial vehicle market due to increased demand.

Commenting on the upcoming edition of Automechanika Dubai, Tommy Le, Show Manager for Automechanika Dubai, said: “Automechanika Dubai is the largest international trade show for the automotive aftermarket industry in the MEA region. The 22 nd edition will span 20 halls at the Dubai World Trade Centre, featuring over 20 Pavilions and a host of new features.

“This year, we are excited to introduce a brand-new Commercial Vehicles vertical dedicated to the mining, construction and agricultural industries. Other new features include a Road Safety Day and a regional focus on the GCC, which spotlights manufacturing. We look forward to welcoming the industry back to Automechanika Dubai as we drive business growth in the automotive aftermarket.”

Automechanika Dubai is based around six key pillars – sustainability, electrification and digitalisation, innovation, training, recruitment and safety. Returning features include the Automechanika Academy,

Innovation4Mobility, the Automechanika Awards, the Pitstop Challenge, the Modern Workshop and the Lubricants, Base Oil and Additives Conference. The show will feature 10 product sections, which include Parts and Components, Electrics and Electronics, Accessories and Customising, Car Wash, Care & Detailing, Body & Paint, Diagnostics & Repair, Oils, Lubricants and Fuels, Tyres & Batteries and a new product area focusing on Connectivity and Autonomous Driving.

About Automechanika Dubai

Automechanika Dubai is the largest international automotive aftermarket trade exhibition in the wider Middle East taking place at the Dubai World Trade Centre between 9-11.

December 2025. Automechanika Dubai acts as the central trading link for markets that are difficult to reach connecting the Middle East, Africa, Indian Subcontinent, Asia and key CIS countries.

About Messe Frankfurt

The Messe Frankfurt Group is the world’s largest trade fair, congress and event organiser with its own exhibition grounds. With a workforce of some 2,500* people at its headquarters in Frankfurt am Main and in 28 subsidiaries, it organises events around the world. Group sales in financial year 2024 were around € 780* million. We serve our customers’ business interests efficiently within the framework of our Fairs & amp; Events, Locations and Services business fields. One of Messe Frankfurt’s key strengths is its powerful and closely knit global sales network, which covers around 180 countries in all regions of the world. Our comprehensive range of services – both onsite and online – ensures that customers worldwide enjoy consistently high quality and flexibility when planning, organising and running their events. We are using our digital expertise to develop new business models. The wide range of services includes renting exhibition grounds, trade fair construction and marketing, personnel and food services.

Sustainability is a central pillar of our corporate strategy. Here, we strike a healthy balance between ecological and economic interests, social responsibility and diversity.

For more information, please visit our website at: www.messefrankfurt.com/sustainability

With its headquarters in Frankfurt am Main, the company is owned by the City of Frankfurt (60 percent) and the State of Hesse (40 percent).

For more information, please visit our website at: www.messefrankfurt.com

*Preliminary figures 2024

#Automark #Pakistan

A Closer Look at Pakistan’s New Trade Commitments with the IMF

Introduction

The Government of Pakistan is preparing to roll out the National Tariff Policy (NTP) 2025–30, effective July 1, 2025. Presented as a framework for export-led growth and industrial modernization, the policy is being driven by the Engineering Development Board (EDB) and the Ministry of Industries.

While the intent is progressive, a deeper analysis reveals concerning consequences—including IMF-driven liberalization, geopolitical implications, and serious risks to domestic manufacturing, employment, and national sovereignty.

What Does NTP 2025–30 Propose?

The policy introduces wide-ranging reforms:

• Customs duty slabs reduced from five to four: 0%, 5%, 10%, 15%
• Additional Customs Duties (ACDs) to be phased out in 4 years
• Regulatory Duties (RDs) to be eliminated in 5 years (with no new RDs introduced)
• 5th Schedule of the Customs Act to be phased out over 5 years
• Average applied tariff to drop from 10.6% (FY25) to below 6% by FY30

Under IMF agreements, Pakistan has also committed to:

• Allow commercial imports of used vehicles (under 5 years) from FY26Q1
• Introduce a 40% premium tariff on used cars, to be reduced annually by 10% until zero by 2030
• Replace the age limit on used vehicles with safety/environmental standards by July 2026
• Remove non-tariff barriers (NTBs) and simplify import/export policies
• Eliminate all sectoral tax exemptions, including those in agriculture and ex-FATA/PATA

Impact on the Automobile Industry

The automobile sector is among the most heavily protected in Pakistan, following the furniture and tyre industries. These protections were purposefully introduced to:

• Encourage local manufacturing
• Reduce import dependency
• Support employment generation
• Facilitate technological localization

Now, sudden liberalization without phased readiness poses a severe threat:

• Billions in investments risk devaluation
• Millions of jobs across the ecosystem (vendors, OEMs, aftersales) are vulnerable
• A fragile industry faces competition from imported used vehicles, impacting both price control and innovation

While experts have been advocating for an export-oriented shift, the reality is: Have we prepared our industry—or our people—for this transition?
Are we producing globally competitive vehicles, raw materials, or components?
Or are we still dependent on importing whatever looks appealing?

(We imported whatever looked good—but this doesn’t build an industry.)

IMF Influence and Geopolitical Imbalance

While the NTP aligns with IMF benchmarks for fiscal reform, it risks long-term industrial erosion. Reforms that reduce protection for strategic sectors such as auto, steel, electronics, and dual-use defense technology weaken economic sovereignty and self-reliance.

Simultaneously, India is rising as a manufacturing hub. Global firms like Apple are shifting production there, while the West deepens its tech and defense ties with New Delhi. Meanwhile, Pakistan is being asked to dismantle protections and comply with IMF liberalization—without equivalent capacity-building support.

Potential Benefits of NTP 2025–30

• Enhances export competitiveness by reducing input costs
• Simplifies tariff structures, improving compliance and trade predictability
• Aligns with WTO norms, building international trade confidence
• Encourages integration into global value chains

Key Risks and Drawbacks

• Threatens local manufacturing and jobs
• Undermines strategic industries including autos and defense
• Reduces fiscal space due to declining tariff revenues
• Promotes import dependency over local innovation
• Reflects external control over internal economic policy

Few Important Questions:

> Question #1:

Is the IMF forcing Pakistan to remain weak in manufacturing and restrict its defense capabilities?
Answer:
While the IMF focuses on macroeconomic reform, its conditionalities often ignore the realities of underdeveloped industries. The removal of protective policies can delay indigenous defense production and manufacturing localization, inadvertently weakening Pakistan’s strategic capacity.

> Question #2:

Is this a dual-faced global strategy—supporting India while pushing Pakistan into economic pressure?
Answer:
Yes. While India receives incentives, FDI, and trade access, Pakistan is burdened with austerity and liberalization without support for industrial capacity-building. This asymmetry exposes geopolitical imbalance in South Asia’s economic future.

> Question #3:

Why are Pakistani higher officials unable to defend against this policy?
Answer:

• Limited bargaining power due to economic crises and IMF dependency
• Lack of long-term vision and fragmented industrial policy
• Inadequate technical preparation in negotiations
• Geopolitical and diplomatic pressures
• Disconnect from industry realities within bureaucracy
• Short-term political survival prioritized over long-term growth

What needs to change?
Pakistan must build technically strong, industry-informed, and unified negotiating teams to protect national interests in all future policy dialogues.

> Question #4:

Why is the local industry—especially the Big 7 automakers—silent and not protesting against these drastic policy changes?
Answer:

1. Corporate diplomacy and fear of backlash
   1. Many companies rely on government licenses and incentives
2. Global ownership and shifting focus
   1. MNCs are re-prioritizing India and other markets
3. Short-term commercial focus
   1. Prioritizing sales and adaptation over activism
4. Lack of collective voice
   1. No strong, unified industry forum with lobbying influence
5. Hope for internal reversal
   1. Many are lobbying quietly instead of going public

Key Take-away: Pakistan at a Crossroads

The National Tariff Policy 2025–30 may be rooted in reform—but unbalanced liberalization without domestic readiness could trigger de-industrialization, job loss, and economic dependency.

For Pakistan to grow sustainably:

• Reforms must be phased, sector-sensitive, and strategic
• Domestic industries must be empowered, not exposed prematurely
• Economic sovereignty must be guarded not just with words—but with vision, unity, and action.

This exclusive article has been published in Automark Magazine’s June-2025 printed and digital edition. Written by @asif-mehmood

Master Group of Industries, one of Pakistan’s most respected and diversified business conglomerates, has officially partnered with Chery Brand, China’s No.1 global vehicle exporter, to bring the latest Super Plug-in Hybrid Electric Vehicles (PHEVs) and New Energy Vehicles (NEVs) to Pakistan.

With over 60 years of industrial excellence and around 40 years of auto-manufacturing experience, Master Group is investing in a cutting-edge manufacturing facility, world-class 3S Dealership network, and comprehensive after-sales support, led by Master Auto Engineering (a subsidiary of Master Group of Industries) under the leadership of Mr. Samir Malik (CEO).

This strategic alliance heralds a new era for Pakistan’s automotive industry, driven by sustainable
mobility, advanced technology, and an elevated customer experience.

Get ready for ground-breaking product launches, innovations, and more.

Lahore, May 05: MG Pakistan has announced a major upgrade to its popular plug-in hybrid SUV, the MG HS PHEV, by introducing a 7KW fast charger as a standard replacement for the existing portable charger. The move reflects the brand’s commitment to delivering smarter, more efficient urban mobility.

Since its launch in Pakistan in October 2024 and the beginning of production in January 2025, the MG HS PHEV – True Hybrid Electric has seen an encouraging response, with over 500 units delivered

Customers have appreciated the vehicle’s design, performance, and eco-friendly drive, but some expressed concerns about the overnight charging time of up to 8.5 hours with the standard portable charger.

Acting upon user suggestions, MG has now introduced 7KW fast charger, which will cut the charging time nearly in half, offering greater convenience to drivers with daily commutes and urban routines.

“We are committed to transforming the Pakistan Automotive landscape by offering the latest technology and services,” said General Manager Marketing Div – Syed Asif Ahmed. “By upgrading to a faster charging solution, we’re not just addressing customer concerns—we’re enhancing the overall ownership experience and reinforcing our leadership in the new energy vehicle segment.”

While the portable charger was originally provided free of cost with MG HS PHEV, the new 7KW charger—valued at PKR 235,000—will now replace it without any additional cost to the customers.

 The portable version will now be available for sales as accessories.

The MG HS PHEV continues to stand out as a premium hybrid SUV offering pure EV range of +50 km, advanced safety features, tech innovation, and low running costs, making it an ideal solution for Pakistan’s urban drivers looking to make a smarter switch to hybrid mobility.

MG Pakistan is a leading name in electric and hybrid mobility solutions, committed to innovation, safety, and sustainability. With a rapidly expanding lineup of smart vehicles, MG is shaping the future of transportation in Pakistan.

• PRESS RELEASE