ISLAMABAD: Pakistan has moved closer to introducing its long-delayed five-year automobile policy after Prime Minister Shehbaz Sharif gave in-principle approval to the draft, according to official sources.
A meeting chaired by the prime minister discussed the proposed policy, which will now undergo further consultations with the International Monetary Fund (IMF), the sources said.
The policy will be submitted to the federal cabinet for approval after the IMF is taken into confidence, they added.
The previous auto policy expired on June 30, 2026, leaving automakers and consumers waiting for a new framework. Delays in its introduction have prompted manufacturers to postpone decisions related to production and vehicle prices.
The prime minister had earlier formed an interministerial committee to review the proposed Automotive and Auto Parts Manufacturing Policy 2026-31. The committee recommended amendments to the draft.
The proposed policy envisages a major restructuring of Pakistan’s automobile sector, including measures to integrate locally manufactured auto parts into global value chains.
It also includes proposals to reduce vehicle prices, promote new electric vehicles, increase local value addition and gradually reduce automobile tariffs.
The draft recommends seven broad principles to transform the automotive sector and proposes setting export targets for the industry.
The new policy is expected to establish a framework for the sector’s development, with a focus on competitiveness, exports and the promotion of electric mobility.
