Pakistan sets $6 billion vehicle export target in new auto policy

Pakistan has announced a new auto policy that sets a target of raising vehicle exports from about $200 million to $6 billion, while promoting electric vehicles, local manufacturing and more affordable cars. Adviser to the Prime Minister for Industries and Production Haroon Akhtar Khan and Information Minister Attaullah Tarar outlined the policy at a news conference in Islamabad on November 7, 2026.

Akhtar said the framework rests on six priorities: affordability, exports, localization, vehicle safety, electric vehicles and transparency. He said manufacturers would face penalties if they failed to meet prescribed export targets. The export goal and enforcement measures were presented as government policy aims; the announcement did not establish whether the targets have been met or how the penalties will be applied.

The policy raises the financing limit for electric vehicle purchases from Rs2 million to Rs10 million, Akhtar said. It also adds 45 vehicle standards and bars manufacturers from collecting booking advances exceeding 20% of a vehicle’s price. The government has reduced import duties on charging stations, and Tarar said sales tax on them had also been reduced.