Pakistan auto policy 2026: Govt consults industry on parts protection and budget proposals

Special Assistant to the Prime Minister Haroon Akhtar Khan chaired a high-level meeting with the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) and PAMA to discuss budget proposals and the formulation of Pakistan's new auto policy.

The consultations focused on duties for automotive parts and the broader direction of the policy set to take effect from July 1, 2026.

What is the new auto policy in Pakistan and what does it cover?

Pakistan's new auto policy 2026-31 aims to strengthen local parts manufacturing, reduce import reliance, and create a more competitive market.

The government is consulting directly with industry stakeholders to shape budget proposals, with all final decisions to be made by consensus.

The policy is also being vetted by the IMF before cabinet approval.

What protection is being offered to local auto parts manufacturers?

Proposals under consideration include protective measures for auto parts that are currently manufactured locally. Parts with the potential for domestic production within five years are also being considered for similar protection. These measures are designed to build a stronger local supply chain and reduce dependence on imported components.

The SAPM stressed that all budget proposals would be finalized through consensus, ensuring full incorporation of industry input. The Secretary for Industries and Production and the CEO of the Engineering Development Board (EDB) are coordinating closely with the auto sector to develop well-informed proposals. The SAPM described this as a structured, consultative process rather than a top-down decision.

Who attended the auto policy meeting and what was discussed?

The meeting was attended by the Secretary for Industries and Production, the CEO of the EDB, an Additional Secretary, and other senior officials. Discussions covered proposed duties on automotive parts and the broader policy framework.

Haroon Akhtar Khan emphasized that the core objective is to strengthen domestic manufacturers and expand Pakistan's industrial base.