Copyright protected content copied from PhoneWorld website.
Pakistan’s proposed Auto Policy 2026-31 has faced another delay as the Ministries of Commerce and Industries remain divided over import duties on locally assembled vehicles, auto parts, and New Energy Vehicles (NEVs).
The disagreement has slowed progress on the policy, which aims to establish a framework for the country’s automotive sector for the next five years. The two ministries have held several meetings to resolve their differences, but they have yet to reach an agreement.
Pakistan’s Auto Policy 2026-31 Faces Further Delay Over Import Duties
The main issue is the proposed tax structure for imported vehicle parts and its potential impact on local manufacturers. Both ministries have differing views on the tariff rates that should apply, making it difficult to finalise the policy.
The matter is now expected to be referred to Prime Minister Shehbaz Sharif for a final decision. His intervention could help resolve the dispute and allow the government to move forward with the proposed policy.
The new auto policy will set the direction for Pakistan’s automotive industry from 2026 to 2031. Its proposed measures cover locally assembled vehicles, imported components, and NEVs, a category that includes electric vehicles and other vehicles using alternative energy technologies.
Import duties are an important part of the policy because they can influence production costs, vehicle prices, and the competitiveness of local manufacturers. Changes in tariffs on imported parts could affect how much companies spend on assembling vehicles in Pakistan. The final structure will therefore be important for both automakers and consumers.
However, the government has not finalised the policy yet. It remains in draft form, and the proposed changes to import duties have not been implemented.
Until the ministries reach an agreement and the government approves the policy, the existing tariff arrangements will remain unaffected by the draft proposals. Further progress will depend on resolving the disagreement and finalising the government’s approach to duties on vehicles and automotive components.
The post Pakistan’s Auto Policy 2026-31 Faces Further Delay Over Import Duties appeared first on PhoneWorld.