Pakistan raises customs duties on tyre and motorcycle parts, expands SME financing
The Economic Coordination Committee approved higher additional customs duties on imported tyres and motorcycle components and introduced first-loss coverage for small enterprises and farmers.
During a meeting of the Economic Coordination Committee chaired by Finance Minister Muhammad Aurangzeb, the government raised the additional customs duty on imports of radial tyres and motorcycle parts made by local manufacturers. The same meeting endorsed a State Bank of Pakistan financing scheme that offers first-loss coverage for loans to SMEs, small farmers and medium-size firms, leveraging micro-finance and non-bank lenders.
An amendment to the relevant customs regulation was also approved to support domestic production. The ECC allocated Rs57.85 billion in supplementary grants, covering initiatives such as the SME Development Authority, the Utility Stores Corporation, public-private partnership projects, and the Thar Coal Rail Connectivity Project. These steps aim to boost local manufacturing, improve credit access for smaller economic actors, and fund key infrastructure.
Why it matters
Higher duties and new loan guarantees aim to protect domestic manufacturers and expand financing for Pakistan's small businesses and farmers.
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