The federal government is set to introduce Pakistan’s new Auto Policy in August, aiming to attract fresh investment, expand local vehicle manufacturing, and promote cleaner transportation, according to sources.
Prime Minister Shehbaz Sharif has directed officials to finalize an investor-friendly policy designed to strengthen the automotive sector and create new employment opportunities.
The upcoming policy is expected to introduce international safety standards for locally manufactured vehicles, bringing Pakistan’s auto industry closer to global benchmarks and improving vehicle quality.
To accelerate the transition toward environmentally friendly transport, the government is also planning targeted incentives for electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), and hybrid vehicles.
As part of Pakistan’s broader climate strategy, the policy is expected to propose a carbon tax on petrol-powered and hybrid vehicles. However, officials say the tax-related measures will be finalized only after consultations with the International Monetary Fund (IMF).
The government is expected to formally announce the new Auto Policy next month.
