Pakistan Announces New Auto Policy Focused on Affordable and Electric Vehicles

ISLAMABAD: The federal government on Saturday announced a new automobile policy aimed at promoting affordable vehicles, electric mobility and local manufacturing, with a particular focus on middle- and lower-middle-income households.

Adviser to the Prime Minister on Industries and Production Haroon Akhtar Khan shared the policy’s key features at a news conference alongside Information Minister Attaullah Tarar in Islamabad.

Haroon Akhtar said the policy was based on six key pillars: affordable vehicles, particularly for middle- and lower-middle-income groups; increased exports; promotion of electric vehicles (EVs); greater localisation; vehicle safety; and transparency.

He said import duties had been reduced to lower manufacturing costs, which would help make locally produced vehicles more affordable, particularly for low-income consumers. He added that the prime minister had placed special emphasis on reducing the prices of vehicles below 1,300cc.

The adviser said the policy also included measures to strengthen local manufacturing, increase the use of locally produced components and boost automobile exports.

Information Minister Attaullah Tarar said the policy was designed to promote affordable, quality and environment-friendly vehicles while strengthening domestic production and exports. He said stakeholders had been consulted, technical data analysed and international automotive models reviewed during its preparation.

Tarar highlighted the growing use of electric scooters and motorcycles, particularly among women and students travelling to educational institutions and workplaces. He said promoting electric mobility would also help reduce Pakistan’s oil import bill and ease the economic burden on consumers.

He described the policy as a comprehensive initiative offering incentives for electric vehicles while encouraging local manufacturing.