Will Hamza Shehbaz give final approval to new Auto Policy 2026-31?
The five-year policy aims to improve Pakistan’s automobile and auto parts industries, with possible changes for car buyers, manufacturers and electric vehicle users.
Hamza Shehbaz seeks detailed briefing
According to sources, senior officials from the Ministry of Industries and Production will brief Hamza Shehbaz on November 4. The briefing will cover the main proposals included in the Automotive and Auto Parts Manufacturing Policy 2026-31.
Prime Minister Shehbaz Sharif has already given initial approval to the proposed policy. However, further reviews and approvals are required before the government can implement it.
IMF review to decide next steps
The government plans to share the proposed Auto Policy 2026-31 with the International Monetary Fund (IMF) later this week. The IMF will review the framework before it moves to the next stages of approval.
After the IMF review, the proposal will be presented to the federal cabinet and Parliament. The required approvals and legal changes must be completed before the proposed measures can take effect.
What changes could the new auto policy bring?
The proposed policy includes several measures that could affect Pakistan’s automobile market. These may cover tax concessions, lower tariffs and changes to the rules for vehicle and auto parts manufacturers.
The proposals could also affect people planning to buy locally manufactured cars or electric vehicles. However, the exact benefits and conditions will depend on the final policy approved by the government.
Car buyers and manufacturers await final decision
The new policy is designed to improve the country's automobile manufacturing sector and support the production of auto parts. Its proposed measures are expected to influence manufacturers, investors and consumers.
No proposed tax relief or tariff reduction should be treated as confirmed at this stage. These changes will only become effective after the required government approvals and legislation.
The Auto Policy 2026-31 could bring important changes to Pakistan’s automobile industry. Lower tariffs and tax concessions may help manufacturers and could benefit consumers.
However, the final impact will depend on the policy approved by the IMF, federal cabinet and Parliament. Car buyers should wait for official details before expecting lower vehicle prices.
Also read: Pakistan Auto Policy 2026-31 could put 1.5 million jobs at risk, industry warns
