Prime Minister Shehbaz Sharif has approved the draft of Pakistan’s new Auto Policy 2026–31. The draft will now be submitted to the Federal Cabinet for final approval, according to sources.
The development follows a briefing by officials from the Ministry of Law. They informed the prime minister about the proposed policy and its key provisions.
After the briefing, Shehbaz Sharif directed officials to present the draft before the Federal Cabinet. The policy will move towards implementation once the cabinet grants its final approval.
The proposed framework will guide Pakistan’s automotive sector over the next five years. It also outlines changes concerning imported vehicles and compliance with relevant standards.
Auto Policy 2026–31 Proposes Changes for Imported Vehicles
According to sources, the draft Auto Policy 2026–31 includes measures to maintain a balance between locally manufactured and imported hybrid vehicles.
The proposal focuses on addressing differences between the prices of these vehicle categories. However, the available information does not specify the exact measures or pricing mechanism planned under the policy.
The draft also proposes making compliance certificates mandatory for imported vehicles. These certificates would confirm that vehicles meet the relevant standards required under the proposed framework.
The requirement is intended to establish clear compliance conditions for vehicles entering Pakistan. Further details about the applicable standards and certification process have not yet been provided.
The proposed changes will form part of the broader framework governing the country’s automotive industry. Their final form will depend on the approval process and any revisions made before implementation.
Federal Cabinet to Review the Proposed Auto Policy
The prime minister’s approval marks a step towards the next stage of the policy process. The draft must still receive approval from the Federal Cabinet before implementation can proceed.
The cabinet will consider the proposed framework as part of the government’s decision-making process. Any final requirements will depend on the approved version of the policy.
The Auto Policy 2026–31 is expected to provide a framework for the automotive sector from 2026 to 2031. Its provisions concerning imported hybrid vehicles and compliance certificates could affect vehicle import requirements.
However, the available details do not confirm any immediate changes to vehicle prices, import duties, or existing import procedures. Such changes should not be assumed until the government announces specific measures.
What Happens Next?
The next step is the submission of the draft to the Federal Cabinet. The government will need to complete the approval process before the policy can move towards implementation.
Further details may clarify how the proposed rules will apply to imported vehicles. These could include information about certification requirements and the treatment of imported hybrid models.
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For now, the draft remains subject to final cabinet approval. The government’s subsequent announcements will determine the final provisions and implementation arrangements for Pakistan’s automotive sector.
