PM approves final draft of auto policy; focus on localisation, EVs, and consumer protection

Prime Minister Shehbaz Sharif has cleared the completed draft of Pakistan’s automotive policy, Business Recorder reported on Saturday. The proposal is expected to go before the Federal Cabinet next, with implementation dependent on further approval steps. Adviser Haroon Akhtar Khan said the plan seeks to move the sector beyond import reliance and basic assembly towards domestic manufacturing with stronger export potential.

The framework gives prominence to locally made components, supplier development and vehicle safety, including safeguards for buyers of used imports. It also promotes electric vehicles to limit exposure to imported petroleum and oil-price swings, while third-party audits are intended to support openness. For vehicle bookings, manufacturers would be barred from demanding an advance exceeding 20% of the vehicle’s price; the policy also points to lower input costs through the National Tariff Policy.