ISLAMABAD: Prime Minister Shehbaz Sharif has directed officials to double Pakistan’s proposed automobile export target to $8 billion annually under a new five-year policy framework, a senior Prime Minister’s Office official said.
The Automobiles and Auto Parts Manufacturing Policy (2026-31) is still being finalised and has not yet received formal approval, despite reports suggesting the policy had already been cleared.
Officials said the prime minister expressed dissatisfaction with the automotive sector’s export performance and asked authorities to increase the proposed target for exports of locally manufactured cars, tractors, motorcycles and rickshaws, Arab News reported.
Export Target Raised
A senior official told Arab News that the initial proposal included achieving around $4 billion in annual vehicle exports by 2031, but Sharif instructed officials to raise the ambition to $8 billion.
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The new policy aims to shift Pakistan’s automobile industry away from an assembly-focused model towards a more export-oriented approach with greater competitiveness and transparency.
The draft framework has been under review since the previous Auto Industry Development and Export Policy (2021-26) expired in June.
Policy Review Continues
The official said several committees have reviewed the proposals, including a committee led by Energy Minister Awais Leghari that conducted discussions with economists and industry stakeholders.
Sharif has outlined three key priorities for the new policy: protecting consumers buying small vehicles, expanding electric vehicle adoption and aligning the framework with Pakistan’s National Tariff Policy 2025-30.
The prime minister also questioned the level of locally manufactured components in vehicles assembled in Pakistan after decades of policies focused on increasing local production.
Final Approval Process
Once completed, the draft policy will be shared with the International Monetary Fund to ensure proposed tariff changes and reforms remain consistent with Pakistan’s economic commitments.
The policy will then be submitted to the federal cabinet for final approval.
Pakistan’s automotive sector has traditionally relied heavily on domestic demand, and the government hopes the new framework will help increase exports, attract investment and strengthen industrial growth.
