Pakistan Likely to Extend Old Auto Policy After Talks With IMF Fail

Pakistan has decided to extend its existing automobile policy for another year after negotiations with the International Monetary Fund (IMF) and the Tariff Policy Board failed to reach an agreement on the proposed new framework, according to sources in the Ministry of Finance.

The existing Auto Industry Development and Export Policy (AIDEP) 2021-26 expired at the end of June, but the government has yet to finalize its replacement.

Sources told ProPakistani that the revised draft of the new policy will undergo another round of negotiations with the IMF before it can be approved.

According to the sources, the government was also unable to fully implement the previous auto policy before its expiry. Prime Minister Shehbaz Sharif has expressed concern over the lack of implementation, while uncertainty over the new policy continues to weigh on the automotive industry.

Sources added that another round of negotiations with the IMF is expected, although the chances of reaching a final agreement during the coming month remain low. Until then, the existing auto policy will remain in force, providing temporary continuity for automakers while broader tariff and regulatory reforms remain under discussion.

The delay comes despite Pakistan’s commitment under its IMF program to introduce a new five year auto policy aligned with the National Tariff Policy 2025-30.