A policy dispute has emerged between the Ministry of Industries and Production and the Ministry of Science and Technology after a key regulatory clearance was withdrawn for the Motor Vehicles Industry Development Bill, 2025. The Ministry of Science and Technology recently withdrew its No-Objection Certificate for the draft bill. It raised serious legal, procedural, and technical concerns. As a result, the legislative process has faced fresh uncertainty.
According to official documents, the ministry argued that the bill overlaps with the legal mandate of the Pakistan Standards and Quality Control Authority. The authority operates under the PSQCA Act, 1996. The ministry stated that the proposed framework risks duplication of regulatory functions. It also warned that further processing at higher forums should be paused.
However, the Ministry of Industries and Production rejected this position. It said the draft bill has already cleared major federal approval stages. It confirmed that the bill was approved by the Cabinet Committee on Disposal of Legislative Cases. It was later ratified by the Federal Cabinet on July 30, 2025. After that, it moved to the National Assembly Standing Committee for review.
The ministry also stressed that inter-ministerial consultation was completed under the Rules of Business, 1973. It said this step was required before submission to the Cabinet Committee on Disposal of Legislative Cases. Officials added that Cabinet decisions are binding on all government divisions. Therefore, they argued that the bill remains valid for parliamentary consideration.
Meanwhile, the industrial ministry highlighted broader structural issues in Pakistan’s auto sector. It referred to a 2024 study by the Pakistan Institute of Development Economics. The study pointed to weak vehicle quality, high production costs, and low localisation. It also noted limited competitiveness in the sector.
According to the report, Pakistan plays a small role in global automotive value chains. Only one in eleven workers in the sector contributes to exports. The industry still employs a large workforce. However, it adds relatively little to overall manufacturing value. As a result, economic losses continue to build over time. Export performance also remains weak. High costs and quality concerns reduce global competitiveness for Pakistani vehicles.
The Ministry of Industries and Production stressed that vehicle quality standards require specialized oversight. It said such standards directly affect safety, exports, and consumer protection. It added that most countries use dedicated institutions for this purpose. These systems ensure performance, safety, and environmental compliance.
The ministry cited global examples, including Malaysia, Japan, Australia, the United States, and India. These countries regulate vehicle standards through structured legal frameworks. Many of these systems are aligned with United Nations regulations. They enforce strict rules for safety and emissions compliance.
Key features such as anti-lock braking systems, known as ABS, are mandatory in many markets. Electronic stability control, or ESC, is also widely required. Strict emission limits are also enforced in these jurisdictions. These measures are designed to improve road safety and reduce environmental harm.
The ministry noted that Pakistan’s regulatory system remains fragmented. Different institutions handle separate standard-setting roles across sectors. It pointed to the Higher Education Commission for education standards and the Ministry of Climate Change for environmental rules. However, coordination across technical industries remains limited.
Officials suggested a more unified framework for the automobile sector. They argued that stronger institutional alignment could improve policy outcomes.
In its conclusion, the Ministry of Industries and Production urged caution. It asked the Ministry of Science and Technology to fully review legal and institutional implications. It said further progress on the bill should only continue after careful evaluation. The dispute now leaves the proposed law in a sensitive phase within the legislative process.
