New Auto Policy May Be Approved Today

Prime Minister Shehbaz Sharif has convened a session to review Pakistan's long-delayed automotive policy, with approval feasible today if he is satisfied with the proposed framework, sources informed ProPakistani.

Key points

• Punjab Launches Crackdown on Fake and Tampered Number Plates Oct 20, 2026 1: 01 pm.
• BYD Pakistan Plant to Start Operations by Mid-December Oct 20, 2026 1: 23 pm.
• The proposed Automotive and Auto Parts Manufacturing Policy 2026-31 is intended to set the direction for Pakistan's automobile industry over the next five years.
• Lahore Traffic Police Wants Citizens to Share Wheeling and Drifting Videos on WhatsA.
• Sources informed ProPakistani that the committee has recommended seven broad principles to transform the automotive industry.

In practice, the proposed Automotive and Auto Parts Manufacturing Policy 2026-31 is intended to set the direction for Pakistan's automobile industry over the next five years. The previous policy expired on June 30, 2026, leaving manufacturers and consumers awaiting clarity on the government's future intends for the sector.

For context, the prolonged delay has created uncertainty for automakers, prompting manufacturers to postpone decisions concerning production and vehicle rates. BYD Pakistan Plant to Start Operations by Mid-December. New Auto Policy Proposes Major Industry Reforms.

Shehbaz had tasked an inter-ministerial committee, headed by the law minister, with reviewing and finalizing the proposed policy. The committee recommended amendments to the draft, including a broad restructuring of Pakistan's automotive sector.

Meanwhile, the proposed framework seeks to growth the apply of locally manufactured auto parts in global supply chains and strengthen the international competitiveness of domestic manufacturers. It additionally seeks to encourage investment, growth local value addition and backing the adoption of electric vehicles.

Another key proposal involves gradually reducing automobile tariffs to improve the industry's competitiveness and potentially create vehicles more affordable for consumers. Hubco Delays Data Center Project. Export Targets and Local Manufacturing in Focus.

Sources informed ProPakistani that the committee has recommended seven broad principles to transform the automotive industry. The proposed framework additionally includes export targets designed to expand Pakistan's presence in international markets.

Greater integration into global value chains is projected to create opportunities for local auto-parts manufacturers while encouraging improvements in production capabilities and technology.

Notably, the policy is additionally intended to provide businesses with a clearer long-term framework for investment and manufacturing decisions. Its proposed measures could influence localization, vehicle pricing, electric vehicle adoption and the development of Pakistan's automotive supply chain.

For context, a decision on the policy could bring an end to months of uncertainty for the industry. Nevertheless, the final provisions and implementation timeline will depend on the government's decision on the proposed framework. Stay Connected with ProPakistani.

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Lahore Traffic Police Wants Citizens to Share Wheeling and Drifting Videos on WhatsA. Oct 20, 2026 1: 38 pm.

Taken together, the developments around new Auto Policy May Be Approved Today point to a situation that is still moving, and the coming days should bring more clarity.