Talks between the government, the International Monetary Fund, and the Tariff Policy Board on Pakistan’s new auto policy have failed to reach a successful conclusion, sources said.

According to sources in the Ministry of Finance, the government has agreed to extend the previous auto policy for another year after failing to finalise the new framework. The earlier policy has already completed its term, but a replacement policy has yet to be introduced.

Sources said the revised draft of the new auto policy will be taken up again with the IMF in fresh negotiations. However, they added that the chances of finalising the new policy during the next month remain low.

The delay comes amid concerns over the government’s inability to fully implement the previous automobile policy. Sources said several key targets and measures under the earlier policy could not be executed as planned.

The matter has also drawn the attention of the prime minister, who has expressed concern over the lack of implementation of the automobile policy, sources added.

The continued delay in the new policy is expected to create further uncertainty for the automobile sector, which has been waiting for clarity on tariffs, import rules, localisation targets, and future investment incentives.