Pakistan auto policy advances cabinet review with localisation, EV focus

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Pakistan auto policy review

Highlights

Pakistan's final draft auto policy, prioritizing localisation and export orientation, will proceed to Federal Cabinet review after PM approval.
Policy emphasizes reducing reliance on completely built units and CKD assembly, aiming to boost domestic manufacturing, job creation, and economic self-reliance.
Alignment with the National Tariff Policy lowers input costs for local manufacturers, enhancing product competitiveness domestically and improving export performance.

Policy priorities and approval process

As reported by Business Recorder, Adviser to the Prime Minister on Industries and Production Haroon Akhtar Khan says the final draft will now be submitted to the Federal Cabinet for consideration and formal approval after receiving the prime minister's clearance.

Speaking at a press conference alongside Federal Minister for Information and Broadcasting Attaullah Tarar on Saturday, Haroon Akhtar says the policy is designed to tackle structural weaknesses in Pakistan's automotive sector and support a more competitive, export-oriented and locally integrated industry. He says earlier policies over the past decade did not deliver the desired export growth, prompting the government to pursue a more focused approach tied to measurable economic outcomes.

The adviser says localisation remains a priority for Prime Minister Shehbaz Sharif because it supports job creation, industrial development and economic self-reliance. He says the government does not want the sector to stay reliant on completely built units or limited assembly of completely knocked-down kits without building a stronger domestic manufacturing base.

Haroon Akhtar also says the policy aligns with the National Tariff Policy, which is intended to reduce production costs by lowering the price of imported raw materials and intermediate goods. He says cheaper inputs can help domestic manufacturers offer more competitive finished products at home and improve Pakistan's position in export markets.

Our earlier report on the GUGO Motors–Shengtang Group MoU highlighted Pakistan’s drive to turn China-linked industrial cooperation into technology transfer and local manufacturing, with a focus on producing export-ready electric buses. The article noted official backing for investment in Special Economic Zones, regulatory streamlining, and broader partnerships across EVs, batteries, and related supply chains to strengthen domestic production capacity and exports.

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