Pakistan auto policy 2026 sets a goal of raising vehicle exports thirtyfold, from $200 million to $6bn, over five years. The plan was announced at a news conference on Saturday, November 7, 2026, by Information Minister Attaullah Tarar and Haroon Akhtar Khan, the prime minister's adviser on industries and production. It also aims to make vehicles more affordable over time, promote electric vehicles (EVs) and set limits on how car makers take booking payments.
Six pillars and falling prices
Haroon Akhtar said the policy was finalised after extensive consultations and that Prime Minister Shehbaz Sharif had given it considerable personal attention. Pakistan auto policy 2026 rests on six areas: affordable vehicles, exports, localisation, vehicle safety, electric vehicles and transparency. Affordability comes first, with a focus on households in the middle and lower-middle income brackets.
Akhtar said a new tariff regime is meant to lower production costs and the import bill for raw materials. Duties on completely built-up (CBU) vehicles, which arrive fully assembled, and on assembly plants will be reduced each year, so prices should fall gradually. He said the prices of every vehicle other than luxury models will come down, although the biggest gains are expected to reach buyers with middle or higher incomes.
Exports, local content and penalties
Exports sit at the centre of the policy, Akhtar said, and manufacturers will be given specific targets to meet. Companies that fail to reach them will face financial penalties. He acknowledged that successive governments introduced auto policies over the past decade without delivering meaningful export growth.
The government also wants a larger share of components and raw materials to be made inside Pakistan. Officials argue that this will strengthen domestic supply chains and create jobs. Under the new rules, a car maker cannot take a booking advance larger than one-fifth of the car's price when the booking is made.
Standards, EVs and what comes next
The policy adds 45 new standards to bring locally assembled vehicles up to international quality levels. Akhtar also said the government is placing greater emphasis on electric vehicles. The pace of the price cuts and the enforcement of export penalties will become clearer as the policy is put into practice.
Aasan alfaaz mein
Hukumat ne nayi auto policy ka elaan kiya hai jis mein gaadiyon ki exports $200 million se barha kar $6bn tak le jane ka target hai. Luxury gaadiyon ke ilawa baqi gaadiyon ki qeemat aahista aahista kam hone ki umeed hai. Gaadi ki booking par advance gaadi ki qeemat ke 20 percent se zyada nahi liya ja sakta. Iska asar kitna aur kab hoga, yeh agle saalon mein dekhna hoga.
