Pakistan’s automotive sector is being handed a roadmap that’s equal parts ambitious and necessary. The Auto Policy 2026-31 lays out five key performance indicators that, if achieved, would mark a historic transformation for the country’s struggling auto industry.
The headline target? Annual vehicle production of 500,000+ units by 2031—more than double the crisis-era low of 56,000 units in FY2023. But production alone won’t cut it.
The policy targets US$1 billion in automotive exports, a figure that would represent a genuine breakthrough for a sector that has historically been inward-focused. Perhaps most radical is the 30% New Energy Vehicle (NEV) share target for new vehicle sales—a clear signal that Pakistan intends to leapfrog into the clean mobility era rather than play catch-up later.
The agricultural sector gets attention too, with a target of 100,000 tractors produced annually, addressing critical mechanization needs in Pakistan’s farming heartland. And tying it all together is that 3,000 EV charging station target, the physical infrastructure backbone that makes the entire NEV vision credible.
Coming off the back of a sector that collapsed from 300,000 vehicles in FY22 to just 56,000 in FY23, these targets aren’t just numbers—they’re a declaration of intent to rebuild Pakistan’s automotive ecosystem from the ground up, with sustainability and export competitiveness baked in from day one.
