Industry policy

Pakistan Auto Policy 2026-31

Pakistan’s Autos and Auto Parts Manufacturing Policy 2026-31 sets out how the country intends to move its vehicle industry from import-dependent assembly towards export-oriented manufacturing. The prime minister approved the policy after the IMF raised no objection to the draft, and the government is taking it to Parliament as a money bill. The policy sets binding minimum domestic value addition for cars, light commercial vehicles, tractors, motorcycles and electric vehicles, mandatory export targets with financial incentives, a mid-term review in 2028 and penalties for manufacturers that fall short. This hub follows the policy from the October draft through its approval in Parliament and the industry response to it.