ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday approved the draft Auto Policy 2026-31, which aims to increase auto sector exports to $6 billion and boost local production, competitiveness and electric vehicle (EV) adoption.

Although the Prime Minister’s Office did not issue an official statement, sources in the federal government shared the final draft, which was presented to the premier by Law Minister Azam Nazeer Tarar and Adviser on Industries and Production Haroon Akhtar.

The draft policy will be presented to the federal cabinet for in-principle approval, then it will need parliament’s nod.

The policy aims to bring the auto sector to open competition by significantly reducing tariffs on completely built-up units (CBUs) and completely knocked-down (CKD) kits up to 15pc by 2030-31.

PM ‘okays’ five-year roadmap; policy targets $6bn exports, tariff cuts by 2031; proposes 1pc sales tax on EVs

Under the proposed draft, battery electric vehicles will be subject to a 1pc sales tax during 2026-31. The document proposes a 6pc sales tax on range-extended electric vehicles and a 9pc on plug-in hybrid vehicles.

A 10pc federal excise duty has been proposed on electric vehicles valued more than $75,000. The policy also envisages lower tariffs on smaller electric vehicles priced below $15,000.

To encourage EV adoption, the government has approved proposals to raise the financing limit from Rs3 million to Rs10m and extend the repayment period from three to five years, making smaller vehicles more affordable for low-income consumers.

The government has set the total export target of $6.01bn during the five years of the policy, which includes combined exports of parts and vehicles amounting to $256.6m for 2026-27, $671.8m for 2027-28, $1.11bn for 2028-29, $1.17bn for 2029-30 and $2.19bn for 2030-31 the fifth year of the auto policy.

The policy also proposes mandatory export targets for vehicle manufacturers, with incentives for companies that increase exports.

Under the proposed incentive mechanism, manufacturers would receive compensation equivalent to 5pc of export value for boosting exports, along with an additional 10pc incentive on exports exceeding the previous year’s level.

Companies that fail to meet their export targets would face penalties, and manufacturing certificates could be cancelled if targets remain unmet for two consecutive years.

The policy also sets new targets to increase the use of locally manufactured auto parts. Companies failing to meet local production targets could lose their incentives.

The government expects to collect more than Rs232bn through the Automotive Development Levy over five years.

The proceeds would be used to finance export incentives and industrial development programmes, including funding for technology upgrades by auto parts manufacturers.

The policy proposes levying the Automotive Development Levy on vehicles with engine capacities exceeding 1,000cc.

To strengthen quality assurance and regulatory oversight, the government plans to establish the Pakistan Automotive Testing Institute. The policy also provides funding for research, certification, and third-party audits, as well as the adoption of international safety standards for locally manufactured and imported vehicles.

Meanwhile, Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) Chairman Abdul Rehman Aizaz said the new policy, by lowering the import tariff on parts to 15pc, would phase out local parts manufacturers and benefit assemblers, warning that assemblers could eventually be phased out as imported cars take over.“This policy will make Pakistan an import destination country with no local industrial base in the auto sector,” he remarked.

Published in Dawn, October 21st, 2026

ISLAMABAD: JUI-F Punjab General Secretary Hafiz Naseer Ahmed Ahrar on Monday urged the party’s political opponents to refrain from what he described as a campaign of character assassination against JUI-F chief Maulana Fazlur Rehman.

In a statement, Mr Ahrar said that Maulana Fazlur Rehman’s remarks should be viewed in the context of the challenges facing Pakistan, but his opponents were running a campaign to malign him.

Responding to remarks by Punjab Chief Minister Maryam Nawaz, Mr Ahrar asked her to explain who had facilitated the PTI’s 13-year rule in Khyber Pakhtunkhwa.

He also challenged her to explain what sacrifices her family had made for Pakistan.

Asks critics to counter Maulana’s remarks with arguments, not allegations

He said the JUI-F workers were heirs to the sacrifices of the country’s martyrs and respected the contributions of all those who had laid down their lives for the country.

“Is it Maulana Fazlur Rehman’s fault that he raises questions about inflation, lawlessness, terrorism and economic decline?” he asked.

He urged critics to counter the JUI-F chief’s position with arguments rather than allegations.

He claimed that the JUI-F’s growing popularity in Punjab had unsettled its political opponents.

He added that people in Punjab were increasingly expressing confidence in the Maulana and his political narrative.

Mr Ahrar said that the Maulana was advocating Pakistan’s development and prosperity, as well as the supremacy of the Constitution and Parliament.

He opposed the imposition of governor’s rule or an emergency in Khyber Pakhtunkhwa.

He also criticised the Punjab government over what he described as the sale of educational and healthcare institutions and measures that were placing additional burdens on the public.

The JUI-F leader said his party’s struggle to transform Pakistan into an Islamic welfare state would continue under Maulana Fazlur Rehman’s leadership.

He said that after gaining public support in Khyber Pakhtunkhwa, Balochistan and Sindh, the party was also witnessing growing confidence among the people of Punjab.

“Insha Allah, JUI-F will emerge as a force for the people’s deliverance in Punjab and across Pakistan,” he said.

Mr Ahrar announced that the JUI-F chief would address a public gathering in Sargodha on Nov 26.

Expressing confidence that the event would draw a large crowd, he said the party’s political activities were causing unease within the provincial government.

Published in Dawn, October 20th, 2026