I don't know whether it's true that ulp diesel is bad for old engines like 1c, 2c, CD20 etc. But you should know that new diesel engines have been entered in Pakistani markets years ago. Toyota Hilux and Hiace have D.4D commonrail diesel engines. Toyota LC & Prado also comes in d4d version.
While at other side, there're still lot of buses, trucks, Pajero, Nissan and Toyota's 2.0D running on roads.
so if they introduce ultra low diesel, then old engines would be destroyed (according to your theory), but if they don't new (very expensive) vehicles won't work fine. . .
btw govt is charging the price of ultra low and selling dirty diesel 