Prime Minister Shehbaz Sharif on Wednesday gave in-principle approval to Pakistan’s new Auto Policy 2026–31, marking a major step toward finalising the long-delayed policy.
Sources told ProPakistani that the policy will now be shared with the International Monetary Fund (IMF) for approval. Once cleared by the lender, it will be presented to the Economic Coordination Committee (ECC) of the federal cabinet and then sent to the cabinet for final approval.
After cabinet approval, the policy will be presented in Parliament and subsequently enacted into law through a Finance Bill.
The policy had faced repeated delays following the FY27 budget talks due to disagreements between the government and the local automobile industry over key provisions related to electric vehicles (EVs), hybrid vehicles, taxation, and localisation.
The new framework aims to promote EVs and hybrid vehicles, boost local vehicle manufacturing, increase technology transfer, and reduce Pakistan’s reliance on imported petroleum products.
