Pakistan’s federal government has introduced a new automotive policy aimed at gradually reducing vehicle prices, promoting electric vehicles and increasing the country’s automotive exports to $6 billion.
Prime Minister’s Adviser on Industries Haroon Akhtar announced the policy at a press conference in Islamabad alongside Information Minister Attaullah Tarar. According to Akhtar, the policy came into effect on November 7.
The government intends to make smaller vehicles more affordable. Akhtar said no additional taxes would be imposed on vehicles below 1,000cc under the new policy.
Electric vehicles will receive particular attention. The financing limit for electric vehicles has been increased from Rs2 million to Rs10 million, while several tax incentives have also been introduced. Discussions with the International Monetary Fund are continuing over a proposed one-percent tax on electric vehicles.
The government has set a target of converting 30 percent of vehicles to electric technology within five years. Officials believe the target could potentially be achieved ahead of schedule.
Pakistan currently exports vehicles worth approximately $200 million annually. The new policy aims to increase this figure to $6 billion. Companies that fail to meet export requirements could face financial penalties.
The policy also introduces 45 additional safety and quality standards to bring locally manufactured vehicles closer to international requirements. Furthermore, manufacturers will not be allowed to collect advance payments exceeding 20 percent of a vehicle’s price.
Information Minister Attaullah Tarar said the policy seeks to strengthen the domestic automotive industry, reduce the import bill and provide affordable, quality vehicles to consumers. He added that wider adoption of electric vehicles could also reduce fuel imports and environmental pollution.
