Government finalizes new auto policy amid IMF review, delaying rollout
The government's plan to roll out Pakistan's new auto policy has been delayed, and the launch is now expected in the first week of August instead of the originally proposed, July 1 timeline.
The postponement follows the International Monetary Fund's (IMF) recommendation for additional consultations on the policy.
The IMF has called for further coordination among the Ministry of Finance, Ministry of Commerce, the Federal Board of Revenue (FBR) and the Ministry of Science and Technology, while the Ministry of Law has been tasked with providing legal support during the consultation process.
The report said the government will continue consultations with the International Monetary Fund (IMF), focusing on tax-related measures as part of a proposed five-year long-term policy framework.
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The new auto policy is designed to stimulate employment, attract fresh investment and align Pakistan's automotive sector with international standards by incorporating all 62 United Nations vehicle safety standards.
It further stated that the government intends to accelerate the adoption of hybrid and plug-in hybrid vehicles, while gradually reducing the production of conventional fuel-powered vehicles.
The policy also aims to encourage the manufacturing of technologically advanced automobiles. However, tax-related provisions will be finalized only after further consultations with the IMF.
