ISLAMABAD: The Pakistan auto policy is in its final stages and will target cheaper vehicles, electric-vehicle growth and lower tariff protection, Special Assistant to the Prime Minister Haroon Akhtar Khan said.
Speaking on “On My Radar,” Akhtar said extensive consultations were complete, and officials were now working through the policy’s legal aspects before its formal announcement. No launch date was specified.
Akhtar said Pakistan now had 13 vehicle manufacturers, compared with three before the previous two auto policies, making competition a central consideration in the new framework. He identified the expansion of electric vehicles as another major change reshaping the sector.
The government has separately implemented the New Energy Vehicles Policy 2025-30, which targets electric vehicles accounting for 30% of new vehicle sales by 2030.
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Akhtar said the new auto framework would also address additional customs duties and regulatory duties while seeking to make locally available vehicles more competitive internationally.
Those changes align with the National Tariff Policy 2025-30, under which Pakistan has committed to gradually phase out additional customs duties and regulatory duties and simplify the customs structure. For the auto sector, the government’s IMF commitments call for progressively reducing protection through 2030 to improve affordability.
The Federal Board of Revenue has already begun tariff rationalisation for FY2026-27, including reductions in additional customs duties and regulatory duties across thousands of tariff lines.
