The Ministry of Industries and Production (MoI&P) has been unable to secure the International Monetary Fund’s (IMF) approval for Pakistan’s proposed new auto policy, delaying its implementation.
According to sources, discussions between the government and the IMF remain inconclusive. As a result, authorities have decided to extend the existing one-year auto policy for another year until a revised framework is finalized.
Officials said several key objectives of the previous auto policy were not achieved. Local manufacturers reportedly missed export targets, while some domestically produced vehicles failed to meet international quality and safety standards.
Prime Minister Shehbaz Sharif had directed the ministry to formulate an investment-friendly auto policy aimed at attracting foreign investment, boosting industrial growth, creating employment opportunities, and making global vehicle safety standards mandatory for locally manufactured vehicles.
The proposed policy also includes penalties for companies that fail to comply with international safety requirements and seeks to enforce 62 global safety standards for both imported and locally assembled vehicles.
Meanwhile, consultations on the draft policy are continuing with the Federal Board of Revenue (FBR), the Ministry of Commerce, the Ministry of Law and Justice, and the Ministry of Science and Technology before it is finalized.
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