PM approves final draft of new auto policy, sends it for Cabinet consideration

Prime Minister Shehbaz Sharif has cleared the final draft of Pakistan’s Automotive Industry Policy 2026-31, which will go to the Federal Cabinet for consideration before it can take effect. Profit by Pakistan Today reported that the announcement was made on Saturday by Industries and Production Adviser Haroon Akhtar Khan, alongside Information Minister Attaullah Tarar.

The proposed rules would cap booking payments at 20% of a vehicle’s price and introduce third-party audits. The framework also aims to expand local parts production, boost exports, lower input costs through the National Tariff Policy, improve vehicle safety and encourage electric vehicle adoption. Its measures are not yet in force, as Cabinet approval and other formalities remain outstanding.