Urdu Report Desk
Prime Minister Shehbaz Sharif has approved the draft of Pakistan’s Automotive and Auto Parts Manufacturing Policy 2026-31, with final approval from the federal cabinet expected soon.
According to sources quoted by ProPakistani, the five-year policy will be presented at the upcoming federal cabinet meeting for approval and implementation.
The policy is intended to set the direction for Pakistan’s automotive industry over the next five years. The previous policy expired on June 30, 2026.
Delay Created Uncertainty for Manufacturers
The delay in approving the new policy had created uncertainty for automobile manufacturers, affecting decisions related to production, investment and vehicle prices.
The proposed framework aims to strengthen Pakistan’s automotive industry by increasing local manufacturing, attracting investment and improving the sector’s competitiveness.
Focus on Integrating Local Parts into Global Supply Chains
The policy also seeks to integrate auto parts manufactured in Pakistan into international supply chains, helping expand the local industry’s access to global markets.
Another key proposal is the gradual reduction of tariffs on automobiles.
Seven Principles and Export Targets Proposed
The new policy framework includes seven core principles aimed at transforming and modernising Pakistan’s automotive industry.
It also proposes export targets designed to expand Pakistan’s presence in international markets.
The federal cabinet’s final approval would pave the way for the policy’s implementation.
