Govt announces auto policy with focus on cheaper vehicles, EVs

Why This Matters

Key context: <p>The federal government on Saturday introduced the new auto policy, with a special focus on cheaper vehicles and electric vehicles (EVs).</p> <p>Information Minister Attaullah Tarar and Adviser to the Prime Minister for Industries and Production Haroon Akhtar Khan announced the policy while addressing a press conference in Islamabad.</p> <p>Speaking to the media, Akhtar said that a lot of work was done in drafting the policy, adding that Prime Minister Shehbaz Sharif had invested a lot of time in this regard.</p> <p>He said that the policy rested on six basic pillars: cheaper vehicles, especially for the middle class and lower middle class; exports; localisation; vehicle safety; promotion of EVs; and transparency.</p> <p>He said that the premier had introduced a tariff policy, the purpose of which was to lower the cost of production and the import bill of raw materials.</p> <figure class='media w-full w-full media-- media--embed media--uneven media--tweet' data-original-src='https://x.com/pmln_org/status/2119042381248880888'> <div class='media__item media__item--twitter '><span> <blockquote class="twitter-tweet" lang="en"> <a href="https://twitter.com/pmln_org/status/2119042381248880888"></a> </blockquote> </span></div> </figure> <p>“You will see that prices of cars will come down … the manufacturing cost of automakers will come down; these were the prime minister’s specific instructions. The prices of all vehicles, except luxury vehicles, will come down,” Akhtar said.</p> <p>He explained that prices would come down gradually as the duties for completely built units (CBUs) and assembly plants would come down each year, eventually leading to competitive tariffs after five years.</p> <figure class='media w-full sm:w-1/2 media--right media--embed media--uneven' data-original-src='https://www.dawn.com/news/2012865'> <div class='media__item media__item--newskitlink '> <iframe class="nk-iframe" width="100%" frameborder="0" scrolling="no" style="height:250px;position:relative" src="https://www.dawn.com/news/card/2012865" sandbox="allow-same-origin allow-scripts allow-popups allow-modals allow-forms"></iframe></div> </figure> <p>In a post on X, Tarar said the new policy was developed after consultations with all stakeholders, analysis of technical data, and a review of various global models.</p> <p>“Innovation, value addition, and localisation will be promoted in the local industry to create employment opportunities and enable vehicle exports,” he said.</p> <p>The minister highlighted that encouraging EVs will reduce carbon emissions and the oil import bill, adding that incentives have also been provided for establishing charging stations.</p> <p>He termed the initiative a “significant step toward providing Pakistani citizens with affordable, high-quality, and environmentally friendly transportation”.</p> <figure class='media w-full w-full media-- media--embed media--uneven media--tweet' data-original-src='https://x.com/TararAttaullah/status/2119057685261996118'> <div class='media__item media__item--twitter '><span> <blockquote class="twitter-tweet" lang="en"> <a href="https://twitter.com/TararAttaullah/status/2119057685261996118"></a> </blockquote> </span></div> </figure> <hr /> <p><em>More to follow</em></p> This development from dawn.com highlights ongoing changes in the sector.