Pakistan Likely to Extend Existing Auto Policy as New Framework Remains Under Review
ISLAMABAD: Pakistan is expected to extend its current Auto Industry Development and Export Policy (AIDEP) 2021-26 for another year after discussions on a new automobile policy remained inconclusive, according to sources familiar with the matter.
The existing policy officially expired at the end of June, but the government has not yet finalized a replacement framework.
New Auto Policy Still Under Discussion
According to sources in the Ministry of Finance, the proposed automobile policy will undergo another round of discussions before it is finalized.
Officials say additional consultations are expected as policymakers continue reviewing tariff structures and regulatory measures related to the automotive sector.
Current Policy Expected to Continue
Until a new framework is approved, the government is expected to continue implementing the existing auto policy to provide stability for automakers and the broader industry.
The extension would help maintain policy continuity while discussions on long-term reforms continue.
Previous Policy Implementation Reviewed
Sources also indicated that several objectives of the previous auto policy were not fully implemented before its scheduled expiry.
Prime Minister Shehbaz Sharif has reportedly expressed concern over the pace of implementation, while industry stakeholders continue to await clarity on the government’s future policy direction.
Future Negotiations Expected
Officials expect further negotiations before the revised policy is finalized. However, sources suggest that reaching a final agreement may take additional time.
Pakistan has committed to introducing a new five-year automobile policy aligned with the National Tariff Policy 2025–30 as part of its broader economic reform agenda.
Until the updated framework receives approval, the existing automobile policy is likely to remain in place, allowing manufacturers and investors to continue operating under the current regulatory environment.
