Pakistan auto policy targets $6 billion exports by 2031

Export targets and localisation rules

The policy shifts the sector from import-dependent assembly to export-oriented manufacturing. Adviser Haroon Akhtar Khan stated that cumulative export targets will reach approximately $6 billion during the implementation period. Auto parts manufacturers are expected to contribute $3.29 billion while automobile manufacturers will provide $2.72 billion. Failing to meet the minimum local value addition rules incurs a further three percentage points of customs duty on applicable non-localized CKD imports during the following fiscal year.

Support for local vendors and firms

Long-term competitiveness depends on the roughly 2,200 auto parts manufacturers in Pakistan that possess essential capacity. The Engineering Development Board and Small and Medium Enterprises Development Authority will implement a Vendor Upgradation and Technology Transfer Programme with Rs 2.1 billion allocated to it. Domestic vendors receive support for technological upgrades, shared manufacturing access, skill building, global quality certification, and export preparation through this programme. The policy likewise aims to fund a minimum of five key automobile component production companies throughout its operational timeframe.

PM approval and cabinet submission

Prime Minister Shehbaz Sharif approved the final draft of Pakistan's Automotive Industry Policy last week. This action sets the stage for Federal Cabinet review and official consent. The policy reflects the Prime Minister's vision of an export-led, self-reliant and competitive economy with a strong emphasis on empowering local manufacturers.