By Moaaz Manzoor

Pakistan's proposed Automotive & Auto Parts Manufacturing Policy 2026-31 has entered the final stage of formulation, with the government seeking to strengthen local manufacturing, increase domestic value addition and accelerate the adoption of New Energy Vehicles (NEVs) under a long-term framework for the automotive sector.

According to the agenda document of the Senate Standing Committee on Industries and Production, available with Wealth Pakistan, the proposed policy is currently in its final stage of formulation at the Cabinet and Ministry of Industries and Production (MoIP) level. The Engineering Development Board (EDB) is expected to brief the committee on the salient features of the policy after its formal approval.

The document states that the proposed framework has been developed to reinforce the government's commitment to clean and sustainable mobility through a comprehensive package of incentives and support measures aimed at strengthening Pakistan's automotive manufacturing ecosystem.

A key feature of the proposed policy is its emphasis on Domestic Value Addition (DVA) across the automotive value chain. According to the agenda, the framework seeks to expand local manufacturing and assembly while encouraging greater production of automotive components within the country to reduce reliance on imported parts.

The proposed policy also places emphasis on promoting the production and adoption of small, affordable and fuel-efficient vehicles alongside NEVs as part of Pakistan's transition towards cleaner transport technologies.

In addition, the framework envisages the development of an environmental and safety regulatory regime aligned with international best practices. It also aims to facilitate exports of vehicles and auto parts while creating a more enabling environment for investment and long-term industrial development.

According to the agenda, the proposed Automotive & Auto Parts Manufacturing Policy 2026-31 is intended to provide a long-term roadmap for Pakistan's automotive industry by strengthening domestic manufacturing capabilities, increasing local value addition and supporting the gradual transition towards cleaner mobility technologies.

Credit: INP-WealthPk