Bangladesh is set to announce its maiden automotive policy draft for vehicle assembly and auto parts manufacturing to achieve 10 percent of GDP ($30 billion) by the year 2030. Experts say the country’s auto sector may soon surpass Pakistan in volume. 

“Bangladesh is taking a step-wise approach from completely built-up unit (CBU) import to semi-knocked down (SKD) to completely knocked down (CKD) to localization and export in the next 10-year period,” a group of industry experts was quoted as saying by The Express Tribune.

The policy would allow Bangladesh to allow the import of 100% SKD parts at 10% customs duty for a period of seven years in respect of passenger cars after which CKD tariff would apply. 

Under the draft, the country would not allow the import of used cars older than five years. 

The policy covered fuel-efficient internal combustion engine vehicles, electric vehicles, hybrid vehicles, and alternative fuel vehicles such as CNG, LPG, biodiesel, ethanol, and hydrogen fuel cells.

Pakistan will also bring out its own auto policy in the coming days, and the industry players there hope that the government takes inspiration from Bangladesh’s policy