Auto parts industry in panic over New Energy Vehicle policy

Dawn reported on November 2 that auto-parts manufacturers are alarmed by leaked versions of Pakistan’s proposed Auto and Auto Parts Policy 2026-31. The document, approved in principle in September and sent for IMF review, is not publicly settled, and the article says its tariff proposals could expose local producers to more import competition.

The draft would lower duties on completely built vehicles to 15 per cent by 2031, while duties on some locally made conventional-vehicle parts would fall from 46 per cent to 15 per cent by 2030-31. It also proposes low duties on imported new-energy vehicles and parts, alongside domestic value-addition requirements for NEV assemblers starting at 10 per cent. The article cites 1,200 parts manufacturers, 300,000 direct jobs and Rs600bn in annual tax revenue, and reports that the manufacturers’ association has submitted alternative tariff recommendations.