The Auditor General of Pakistan has revealed major flaws in the country’s Auto Export Policy 2021-26, stating that it failed to meet its core objectives. The policy, aimed at ensuring a 10% mandatory export of vehicles and parts within five years, did not achieve the targeted results.
According to the audit, both car manufacturers and the Ministry of Industries and Production struggled to boost exports or protect consumer interests. The report described the policy’s failure as a case of serious administrative negligence, calling for urgent corrective measures.
One of the key issues highlighted in the report was the delay in vehicle deliveries, despite manufacturers collecting full payments from customers. Practices like charging “own money” and ignoring the 20% down payment rule were widespread, raising serious concerns about consumer protection.
The audit also noted that contractors and manufacturers who failed to meet export targets were not held accountable, even though the policy offered incentives for timely achievement. The Engineering Development Board (EDB) failed to collect proper export data, while illegal imports of spare parts and CKD kits bypassed necessary approvals.
Furthermore, the report criticized the lack of an effective mechanism to handle complaints related to late vehicle deliveries. Weak regulation and the absence of oversight undermined the goals of the Export Policy, while also affecting consumer rights.
Officials say the audit findings point to systemic issues in policy implementation and call for stricter monitoring, transparency, and accountability. The Export Policy was intended to promote Pakistan’s automotive industry on the international stage, but without proper enforcement, the objectives remain unfulfilled.
Industry analysts believe that revising the Export Policy with stronger safeguards and performance monitoring could help restore investor confidence and boost Pakistan’s vehicle exports in the coming years.
The Auditor General emphasized that immediate corrective action is necessary to prevent similar failures in future export-focused initiatives.
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