ISLAMABAD: The government of Pakistan has proposed raising the share of locally made automobile parts from 10 percent to 40 percent over the next five years under a new auto policy.
Prime Minister’s Adviser on Industries and Production Haroon Akhtar Khan said the proposed policy aims to increase localization, boost exports and protect consumer interests while improving vehicle quality and safety.
Haroon Akhtar said several drafts of the policy circulating in the market were not final. He said the final version was prepared after considering the interests of consumers, manufacturers and exporters.
The higher localization targets are expected to support domestic auto-parts manufacturers and create jobs by increasing local production.
Under the proposed framework, auto-parts exporters would also be eligible for Drawback of Local Taxes and Levies (DLTL) incentives.
The policy would retain pre-inspection requirements for imported vehicles, while the Pakistan Standards and Quality Control Authority (PSQCA) would conduct vehicle verification.
Third-party inspections would also be allowed, with foreign certification accepted provided the certifying organization establishes a subsidiary office in Pakistan.
The government also plans to make compliance with 69 regulations under the WP-29 Convention mandatory to strengthen vehicle safety standards.
Consultations with commercial vehicle importer associations have also been completed regarding proposed changes to vehicle imports.
