Prime Minister Shehbaz Sharif has granted initial approval for Pakistan’s upcoming Auto Policy covering the 2026–31 period.
According to insiders, the drafted framework will now be submitted to the International Monetary Fund (IMF) for review. Upon receiving clearance from the global lender, the Economic Coordination Committee (ECC) will assess the policy before forwarding it to the federal cabinet. Following cabinet endorsement, the framework is slated to be presented in Parliament to be enacted into law through a Finance Bill.
This advancement is a major milestone, as the policy had previously stalled during the FY27 budget discussions. The hold-up was primarily caused by disagreements with the domestic automobile sector regarding taxation, local production mandates, and the regulatory structure for electric vehicles (EVs) and hybrid cars.
The finalized policy aims to accelerate the adoption of EVs and hybrid vehicles, stimulate domestic manufacturing, facilitate the transfer of advanced technology, and significantly curtail the nation’s heavy reliance on imported petroleum.