Prime Minister’s Adviser on Industries and Production Haroon Akhtar stated that car prices will gradually decrease following the government's approval of a new auto policy. Speaking at a press conference in Islamabad with Federal Information Minister Attaullah Tarar, Akhtar said the policy was finalized after lengthy consultations.
The new policy includes a rule that carmakers are not allowed to take more than 20% of a car’s price as an advance payment from buyers. Akhtar noted that the drop in prices would mainly benefit the middle and upper-income classes. To improve vehicle quality to international levels, 45 additional standards have been added to the policy, which Akhtar said would place cars made in Pakistan among the best.
A primary goal of the policy is to raise auto sector exports from the current $200 million to $6 billion. Akhtar said that while policies for the auto sector had been made for the past 10 years, exports never grew. He stated that a lot of work went into this export-focused policy, where vehicle exports have been given special priority. Manufacturers that fail to meet their export targets will face penalties.
The government is also placing special attention on electric vehicles due to their growing importance following recent tensions in the region. To encourage their use, the financing limit for electric vehicles has been raised to Rs. 10 million. Additionally, import duties on charging stations for electric vehicles have been cut.
Akhtar said the new policy targets better vehicle quality, lower prices, wider use of electric vehicles, and higher exports. He further stated that large industries are a government priority, and the auto industry plays a key role in large-scale manufacturing.
