Govt to Cap Car Booking Advances At 20% to End On-Money Practices

Meanwhile, the administration aims to cap car booking advances at 20 percent and introduce measures to curb "On Money" practices under the new five-year Auto Policy 2026-31, according to the draft policy documents available with ProPakistani.

Key points

• Govt to Punish Car Makers for Missing Export Targets Under New 5-Year Policy.
• From July 2027, manufacturers would face phased and verifiable Minimum Domestic Value Addition Requirements.
• The policy additionally proposes adopting 45 further UNECE vehicle safety regulations and establishing the Pakistan Automotive Testing Institute.
• The draft will be shared with the Economic Coordination Committee of the federal cabinet for approval it the responsible authority's earliest convenience.
• It additionally proposes recognizing L6 and L7 urban mobility vehicles as affordable alternatives to motorcycles, with a focus on increasing their local production.

Meanwhile, the policy would additionally protect the rate agreed at the time of booking, aiming to prevent buyers from facing higher rates after placing their orders.

Meanwhile, the administration is additionally proposing stricter rules for applied vehicle imports, including third-party inspection and after-sales service requirements.

Notably, the draft policy seeks to strengthen consumer protection alongside wider reforms in the auto sector.

In practice, the policy additionally proposes adopting 45 further UNECE vehicle safety regulations and establishing the Pakistan Automotive Testing Institute.

For context, the draft will be shared with the Economic Coordination Committee of the federal cabinet for approval it the responsible authority's earliest convenience. Stay Connected with ProPakistani.

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Taken together, the developments around govt to Cap Car Booking Advances At 20% to End On point to a situation that is still moving, and the coming days should bring more clarity.