Auto policy envisages indigenisation, export growth: PM's Adviser Haroon

Pakistan’s 2026-2031 auto policy aims to shift the industry from import-led assembly toward locally made vehicles and parts, with exports as a larger part of production, Dawn reported. Adviser Haroon Akhtar Khan said manufacturers must meet local value-addition thresholds; firms that fall short will face an extra 3 percentage points of customs duty on imported CKD kits in the following financial year.

The plan also sets an export goal of around $6bn over five years and offers eligible exporters support equal to 5% of net FOB value, plus a 10% incentive for qualifying additional exports. A Rs2.1 billion vendor technology programme is intended to assist the country’s approximately 2,200 parts makers, while investment in five anchor suppliers is targeted. The policy also ties a 5% duty concession on imported battery electric vehicles priced up to $15,000 to setting up local assembly or manufacturing, backed by a surety bond and bank guarantee.