Key Takeaways
- Pakistan’s new five-year Auto Policy (2026-2031) approval tied to IMF consultations.
- Final approval delayed until IMF review mission scheduled for September 23.
- Previous policy expired on June 30, 2026, and new policy faced delays over vehicle taxes and incentives.
Pakistan’s new five-year Auto Development and Export Policy (2026-2031) has been linked to ongoing consultations with the International Monetary Fund (IMF), raising uncertainty over its final approval and launch.
Sources in the Ministry of Industries and Production stated that the draft policy will be discussed with the IMF review team during their upcoming visit to Pakistan, scheduled for September 23.
The delay in the policy’s launch follows the expiration of the previous Auto Industry Development and Export Policy on June 30, 2026, and initial expectations of its replacement in July, which were later pushed to August.
However, differences over vehicle taxes, tariffs, and incentives, particularly proposed concessions for electric and hybrid vehicles, have further delayed the final approval.
The new policy aims to address these issues and provide a framework for the auto industry’s development and export, but its implementation remains uncertain.
The IMF review team will assess Pakistan’s economic situation and provide recommendations, which could influence the final approval of the new policy.
Industry stakeholders are concerned about the potential impact of these consultations on the auto sector, which is crucial for Pakistan’s economic growth.
The Ministry of Industries and Production has not provided a specific timeline for the policy’s finalization, leaving the industry in a state of anticipation.
