Pakistan Unveils New Auto Policy, Cars to Get Cheaper, $6 Billion Export Target

The federal government unveiled a new auto policy on Saturday, November 7. The goal is cheaper cars and more electric vehicles.

Information Minister Attaullah Tarar and Adviser to the PM for Industries Haroon Akhtar Khan announced it in Islamabad. Akhtar said cabinet approval had started the same day. Tarar said the government wanted to address speculation before seeking that approval.

Akhtar credited Prime Minister Shehbaz Sharif with spending a lot of time on the policy.
The policy rests on six pillars:

1. Cheaper vehicles, mainly for middle and lower-middle income buyers
2. More exports
3. Local manufacturing
4. Vehicle safety
5. Electric vehicle growth
6. Transparency

Akhtar said prices will drop for all vehicles except luxury models. He said this was a direct instruction from Prime Minister Shehbaz Sharif. Automakers’ manufacturing costs are also expected to fall.

The price cuts will happen slowly, not all at once. Duties on imported vehicles, assembly plants, and parts will fall each year. Tariffs will reach competitive levels after five years.