The federal government is set to unveil a new Auto Policy in August aimed at attracting investment, accelerating electric vehicle (EV) adoption, and modernising Pakistan’s automotive industry, sources told RBN.
According to the sources, Prime Minister Shehbaz Sharif has directed officials to finalise an investor-friendly policy that encourages new investment, expands local manufacturing, and creates employment opportunities across the sector.
The upcoming policy is expected to introduce measures to promote electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), and hybrid vehicles as part of Pakistan’s transition towards cleaner transportation.
Officials are also planning to align locally manufactured vehicles with international safety standards to improve quality and strengthen the competitiveness of Pakistan’s auto industry.
As part of the proposed framework, the government is considering the introduction of a carbon tax on gasoline-powered and hybrid vehicle engines to support environmental and climate objectives, the sources said.
Tax-related proposals under the policy are expected to be finalised after consultations with the International Monetary Fund (IMF), while the broader policy framework is being prepared for launch next month.
The new Auto Policy is expected to replace the existing framework with a greater focus on investment, technology, sustainability, and consumer safety.
