Prime Minister Shehbaz Sharif called a meeting to examine Pakistan's delayed automotive policy, and he might approve the framework today if he finds it satisfactory, according to sources.
The draft titled Automotive and Auto Parts Manufacturing Policy 2026-31 will guide the national car sector for the coming five years. The prior policy ran out on June 30, 2026, causing both buyers and makers to wait for official direction.
This extended wait caused confusion for car companies, forcing them to delay choices regarding manufacturing schedules and car costs.
New Auto Policy Proposes Major Industry Reforms
Shehbaz directed an inter-ministerial committee led by the law minister to examine and complete the policy. The group suggested changes to the document, featuring a massive overhaul of the domestic car business.
The plan pushes for higher usage of domestic vehicle components in worldwide supply chains and seeks to boost global competitiveness for local producers. It also encourages funding, higher domestic value addition, and electric vehicle usage.
A separate suggestion involves lowering car import duties step by step to raise sector competitiveness and potentially lower vehicle prices for buyers.
Export Targets and Local Manufacturing in Focus
Insiders shared that the committee suggested seven core ideas to reshape the car sector. The blueprint contains export goals built to grow Pakistan's footprint abroad.
Deeper links into worldwide supply chains should open doors for local parts makers while pushing upgrades in manufacturing methods and technology.
The strategy also gives companies a stable long-term structure for factory plans and spending. The steps inside could shape localization, pricing, electric vehicle use, and the local parts supply chain.
Approval would halt months of doubt for the market, though exact rules and rollout dates rest on the government final verdict.
