New Auto Policy Sets Higher Export Targets For Car, Auto Parts Makers

Pakistan’s new Auto Policy proposes a sharp increase in export targets, requiring car exports to reach 4 percent in 2026 to 27 and 20 percent by 2030 to 31. The target for auto parts manufacturers would also rise from 5 percent to 15 percent.

The policy seeks to increase exports by linking local auto parts manufacturers with global supply chains. It also proposes a Duty and Tax Remission for Exporters scheme and the creation of an Auto Parts Export Council.

The policy also proposes measures to lower vehicle prices and promote electric vehicles through tax incentives and other financial relief. The draft will be discussed with the International Monetary Fund through online consultations and during the upcoming economic review before final approval.