Pakistan to launch auto, tractor policy to boost localization, exports

Pakistan will soon introduce a comprehensive auto and tractor policy to strengthen local manufacturing and boost exports, a senior government official said on Wednesday.

Haroon Akhtar Khan, the special assistant to the prime minister on industries and production, said the policy is being finalized under the direction of PM Shehbaz Sharif.

The policy is designed to address challenges facing the auto sector while promoting sustainable growth, Khan said while chairing a meeting in Islamabad with Sikandar Mustafa, chief executive officer of Millat Tractors, to discuss the future roadmap of Pakistan’s auto and tractor industry.

Federal Secretary for Industries and Production Saif Anjum also attended the meeting.

The discussions focused on the upcoming auto and tractor policies, as well as measures to promote localization and indigenization in the engineering sector, according to an official statement.

Khan said the new framework has been formulated after carefully considering the issues faced by the auto industry and is intended to provide a balanced, growth-oriented roadmap.

He added that Pakistan’s auto sector holds significant potential and can expand through increased domestic production and localization.

“The core objective of the new auto policy is to empower industries, strengthen domestic production and promote export-led growth,” Khan said.

During the meeting, Mustafa, the CEO of Millat Tractors, said his company has achieved 90% localization in tractor manufacturing.

He added that the company has developed export capacity and is currently exporting tractors to international markets, reflecting what he described as the competitiveness of Pakistan’s engineering sector.

Khan directed the Engineering Development Board to ensure broad-based consultations with stakeholders in the auto and tractor sectors to develop an inclusive and practical policy framework aimed at supporting long-term industrial growth.