PM Shehbaz Sharif approves final draft of new auto policy to promote EVs
Prime Minister Shehbaz Sharif has approved the final draft of Pakistan's new auto policy. It aims to increase competition and encourage electric vehicle manufacturing.
For information only, not investment advice. Prices change quickly: check the time and source of every figure.
- The final draft of the new auto policy has been approved by the prime minister.
- The draft will go to the Federal Cabinet for final consideration.
- EV charging stations are exempt from all customs duties.
- The policy targets a thirty-fold rise in sector exports from $200 million.
Prime Minister Shehbaz Sharif has approved the final draft of Pakistan's new auto policy, according to TechJuice. The federal government says it wants more competition in the auto market and more electric vehicle (EV) manufacturing.
Information and Broadcasting Minister Attaullah Tarar announced the approval at a joint press conference with the Prime Minister's Adviser on Industries, Haroon Akhtar. The government will now submit the approved draft to the Federal Cabinet for final consideration.
The state hopes the policy will reduce Pakistan's dependence on imported petroleum products. According to the report, successive governments kept high import duties to protect local car makers, while the new policy encourages additional manufacturers to enter the market.
The policy was formulated after consultations with stakeholders and comparative assessments of global auto policies. It preserves existing facilities for petrol-powered vehicles with engine capacities up to 800cc.
On EVs, the government has exempted the establishment of charging stations from all customs duties and reduced the applicable sales tax on charging infrastructure. Tarar said Pakistan offers opportunities for EV makers to set up local production facilities, and that the industry will develop local supply chains and export vehicles to international markets.
Tarar also said women and students show demand for electric motorcycles and scooters. The government is developing a formal policy to register non-custom-paid (NCP) vehicles in Khyber Pakhtunkhwa through the Customs and Excise departments.
The report says the policy targets a thirty-fold increase in sector exports, starting from $200 million. It also introduces 45 new UN-backed safety standards for cars.
Why it matters
The policy could change car prices, competition among local carmakers and the availability of electric vehicles for buyers in Pakistan. Owners and buyers of petrol cars up to 800cc keep their existing facilities. Businesses planning EV charging stations benefit from the customs duty exemption and the lower sales tax. Women and students interested in electric motorcycles and scooters are among the groups Tarar mentioned. Buyers of non-custom-paid vehicles in Khyber Pakhtunkhwa may be affected by the planned registration policy.
