ISLAMABAD: The federal government has outlined major reforms under Pakistan’s proposed Auto Policy 2026–31, including a 20% limit on vehicle booking advances, additional international safety standards and measures aimed at reducing car prices while strengthening local manufacturing.
Prime Minister’s Adviser on Industries and Production Haroon Akhtar Khan said the government was committed to making vehicles more affordable and improving Pakistan’s competitiveness in international automotive markets.
Haroon Akhtar Khan said the proposed policy would prevent automobile manufacturers from collecting more than 20% of a vehicle’s price as an advance booking payment.
The measure is intended to protect consumers from excessive upfront payments and improve transparency in vehicle purchases.
The government has also proposed introducing 45 additional international safety standards to improve vehicle quality and passenger protection.
These provisions remain subject to the necessary policy approvals and implementation measures.
The adviser said Prime Minister Shehbaz Sharif had directed authorities to prioritize affordable transportation, particularly for middle-class and lower-middle-class families.
He expressed confidence that increased competition, improved manufacturing efficiency and tariff reforms would gradually reduce vehicle production costs and consumer prices.
The government aims to raise cumulative vehicle and auto-parts exports to approximately $6 billion over five years, compared with current annual exports of around $200 million.
The proposed framework links manufacturers’ incentives to export performance and includes penalties for failing to meet specified targets.
Electric Vehicle Financing Increased to Rs10 Million
Haroon Akhtar Khan said the government was also prioritizing electric vehicles to reduce dependence on imported petroleum products.
The proposed financing ceiling for electric vehicles has been increased to Rs10 million, making financing more accessible to potential buyers.
The policy also targets a 30% share for electric vehicles in new vehicle sales by 2030.
Tarar said expanding electric mobility could help reduce carbon emissions, lower fuel imports and improve environmental sustainability.
ALSO READ: Larkana Oil Tanker Fire Destroys Petrol Pump, Vehicles
He added that no additional tax had been proposed on petrol-powered vehicles with engine capacities below 1,000cc, including 800cc cars.
The government expects the reforms to support a more competitive, export-oriented automotive industry while improving affordability for Pakistani consumers.
