FPCCI hails new auto policy

According to Business Recorder, Atif Ikram Sheikh, president of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), has welcomed the Auto Policy 2026 recently approved by Prime Minister Shehbaz Sharif. He called it an achievement that would support modernisation, local manufacturing and Pakistan's standing in global automotive supply chains. He also welcomed the plan to attract at least five anchor auto-parts makers, which he said would bring foreign investment and technology.

Sheikh welcomed the proposed Auto Parts Export Council and the incentives for export-oriented output, noting that scrapping duties on imported equipment and parts meant for exports would cut production costs. He said the move would make Pakistani vehicles and components more competitive abroad. The FPCCI chief also backed the creation of small and medium enterprise clusters in the sector, which he expects to create thousands of technical jobs.

On electric and new energy vehicles, Sheikh cited a sales tax cut to 1 percent along with the removal of Federal Excise Duty, Capital Value Tax and withholding tax, which he said would speed the shift to clean transport. He also noted that raising the financing limit for electric vehicles to Rs10 million would widen access. Sheikh pledged the business community's support and offered FPCCI's help in coordinating manufacturers, investors and regulators.