The federal government is expected to unveil Pakistan’s new Auto Policy in August, with Prime Minister Shehbaz Sharif directing officials to prepare an investor-friendly framework aimed at attracting fresh investment and expanding local vehicle manufacturing, sources told ProPakistani.
According to the sources, the policy will focus on increasing investment in the automotive sector while creating new employment opportunities.
The new framework is expected to introduce international safety standards for locally manufactured vehicles to improve quality and align the industry with global practices.
Officials are also planning measures to accelerate the adoption of electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), and hybrid vehicles through targeted incentives.
In addition, the policy is expected to propose a carbon tax on petrol-powered and hybrid vehicles as part of Pakistan’s broader climate and environmental strategy.
Sources said tax-related measures under the policy will be finalized after consultations with the International Monetary Fund (IMF).
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