PM okays IMF-cleared auto policy

Prime Minister Shehbaz Sharif has approved Pakistan’s Autos and Auto Parts Manufacturing Policy 2026-31 after the IMF raised no objection to its draft, The Express Tribune reported. The plan sets a cumulative export goal of about $6.01 billion, including $3.29 billion from parts makers and $2.72 billion from vehicle manufacturers.

The policy requires existing manufacturers to lift local value addition by 2% annually, while setting 2030-31 localisation floors of 40% for cars and SUVs, 80% for tractors and 90% for motorcycles and rickshaws. A Rs2.1 billion programme will support vendor technology upgrades, and eligible exporters can receive support through a local-tax drawback scheme. The government also plans a mini-budget through a money bill after cabinet approval.