IMF raises no objection as Pakistan moves ahead with new auto policy

Pakistan’s new automotive policy has cleared an initial hurdle after the IMF raised no objection to the 2026-31 plan, according to reporting cited by Profit by Pakistan Today. Prime Minister Shehbaz Sharif has approved the framework, which sets a $6 billion export goal and estimates foreign-exchange savings of $17.7 billion through local production.

The government is expected to seek federal cabinet approval before putting related legislation before Parliament. The plan would require automakers to meet local-content thresholds, with a three-percentage-point customs duty on certain CKD imports if manufacturers fall short, subject to legal approval. It also earmarks Rs2.1 billion to upgrade about 2,200 parts makers and offers export incentives, while setting conditions for lower duties on some imported electric vehicles.