New Auto Policy Sets Higher Export Targets For Car, Auto Parts Makers

Pakistan's new Auto Policy proposes a sharp growth in export targets, requiring car exports to reach 4 percent in 2026 to 27 and 20 percent by 2030 to 31.

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Meanwhile, the policy seeks to growth exports by linking local auto parts manufacturers with global supply chains. It additionally proposes a Duty and Tax Remission for Exporters scheme and the creation of an Auto Parts Export Council.

In practice, the policy additionally proposes measures to lower vehicle costs and promote electric vehicles through tax incentives and other financial relief. The draft will be discussed with the International Monetary Fund through online consultations and during the upcoming economic review before final approval.

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While customs duty on electric vehicle charging station equipment would be set at 1 percent, electric vehicles are proposed to receive exemption from federal excise duty, capital value tax and withholding tax.

Notably, the proposed policy additionally recommends raising the financing limit for electric vehicles to Rs. 10 million and extending the loan repayment period from three to five years. Electric vehicles, plug in hybrid electric vehicles and range extended electric vehicles would receive equal treatment under the proposal.

In practice, the administration additionally intends to reduce customs duties on conventional vehicles by up to 80 percent over the next five years, with the policy aimed at making vehicles more affordable while promoting fuel efficient and environmentally friendly options.

In practice, the policy proposes new consumer protection rules under which manufacturers would be responsible for any cost rise after a vehicle is booked. Customers would additionally have to be given a delivery date at the time of booking.

For context, the document sets six principles for vehicle manufacturers and proposes penalties for firms that fail to meet performance targets, along with incentives for those that achieve their targets. Stay Connected with ProPakistani.

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For now, new Auto Policy Sets Higher Export Targets For Car, Auto Parts Makers remains the part of the story worth watching, and further updates are likely as more details are confirmed.