Islamabad — Officials of the Ministry of Industries and Production told the Senate Standing Committee on Industries and Production that the Pakistan auto policy update covering 2025–30 has not been finalised. The ministry is preparing to send the draft to the Ministry of Finance, which will share it with the International Monetary Fund (IMF), the lender that reviews Pakistan’s major economic reforms, for review.
The briefing was given on Tuesday to the panel chaired by Saleem Mandwiwala. Committee members said the automobile sector is already under strain because approval of the framework has been delayed. The same sitting also covered the national industrial policy, electric vehicle (EV) production, and security arrangements at Pakistan Steel Mills in Karachi.
Draft path and Senate concerns
Industry ministry officials described a clear next step for the Pakistan auto policy update: Industries and Production will forward the text to Finance, and Finance will put it before the IMF. No final approval date was announced. The committee pressed for faster movement, arguing that prolonged uncertainty is damaging for manufacturers and related businesses.
Electric vehicles: output up, charging thin
The Engineering Development Board (EDB), which steers local engineering and auto manufacturing, told senators that local production of electric two- and three-wheelers has tripled. Output reached 210,268 units in fiscal year 2025–26, compared with 59,756 a year earlier. EDB figures show a longer climb from 7,345 units in 2021–22, to 14,995 in 2022–23 and 21,551 in 2023–24.
The Ministry of Industries and Production said more than 85 companies hold licences to assemble or make electric two- and three-wheelers, with combined motorcycle capacity above 290,000 units. Pakistan’s New Energy Vehicle (NEV) Policy 2025–30 seeks for electric and hybrid models to make up 30 percent of new vehicle sales by 2030, with a target of 2.223 million such vehicles. The government says the shift could cut carbon emissions by 4.5 million tonnes and save about 2.07 billion litres of fuel a year, worth nearly USD 1 billion in foreign exchange.
Senators questioned whether roads, power and workers are ready. Senator Anusha Rehman said, “Globally, infrastructure is developed first, and then vehicles are manufactured. In Pakistan, we are doing the opposite.” She added that only one station, at Bhera on the Islamabad–Lahore motorway, had been confirmed as operational. An EDB official said the government wants at least 3,000 charging stations nationwide and has negotiated electricity at Rs40 per unit for charging facilities. About 18 installations are under way, and 40 motorway sites between Peshawar and Karachi have been identified, but the EDB did not give a firm nationwide count of public chargers already working.
Incentives, skills and next steps
Officials outlined customs duties of 15 percent on non-localised completely knocked-down kits, 46 percent on localised kits, and one percent on specific EV parts. Key components such as batteries, motors, converters and chargers attract one percent customs duty until 30 June 2027. Locally assembled electric two- and three-wheelers face one percent sales tax, while imported electric two- and three-wheelers get a sales tax waiver.
The committee urged regulators to tie commercial licences to proper training, including curriculum work with the National Vocational and Technical Training Commission (NAVTTC), and recommended that an Auto Industry Development and Export Policy team visit vocational facilities in China. Until the Pakistan auto policy update clears the Finance–IMF review and is finalised, buyers and factories will wait for clearer rules on duties, localisation and long-term EV support.
Timeline: what has happened so far
- FY 2021–22: Local electric two- and three-wheeler production stood at 7,345 units (EDB).
- FY 2022–23 to 2023–24: Output rose to 14,995, then 21,551 units.
- FY 2025–26: Production reached 210,268 units, up from 59,756 the previous year.
- Tuesday: Senate panel told the 2025–30 auto policy draft is unfinished and will go to Finance for IMF review.
- Until 30 June 2027: One percent customs duty on key EV components such as batteries and motors remains in the stated tariff framework.
Aasan alfaaz mein
Nayi auto policy 2025–30 abhi final nahi hui. Pehle draft Finance Ministry ke zariye IMF ko review ke liye jayega. Electric bike aur rickshaw ki local production bohot barh gayi hai, lekin charging stations abhi kam hain. Jab tak policy clear nahi hoti, car aur EV khareedna ya factory plan banana mushkil rehta hai.
