Pakistan assures Japanese automakers on tax, export issues to sustain investment

Pakistan on Tuesday assured Japanese automobile manufacturers that their concerns would be addressed to deepen and sustain industrial cooperation, with the government pledging to improve the investment climate for long term engagement.

Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar said Islamabad was committed to resolving outstanding issues in partnership with industry stakeholders to ensure continued, mutually beneficial cooperation.

Speaking at the Japan Pakistan Business Seminar 2026, Akhtar acknowledged that recent engagements with Japanese automakers had flagged concerns over tax refunds and export related bottlenecks, underscoring the need for streamlined processes and sustained dialogue to support long term growth.

He said the automotive sector remained one of the most visible and impactful areas of bilateral economic cooperation, noting that Japanese companies had operated in Pakistan for decades and helped shape the country’s industrial landscape through technology transfer, job creation and local supply chain development.

Toyota, Suzuki and Honda, he said, had contributed beyond vehicle assembly, expanding into parts manufacturing, logistics, dealership networks and after sales services.

Japanese Ambassador to Pakistan Akamatsu Shuichi said Japanese automotive companies had made a substantial and lasting contribution to Pakistan’s economy and would continue to do so. He said Japanese firms had created more than 100,000 jobs in Pakistan and established domestic supply chains to localise automotive components.

The seminar brought together government officials, business leaders, universities and representatives of the Japan Chamber of Commerce and Industry in Pakistan, the Japan International Cooperation Agency and the Japan External Trade Organisation.