Breaking News: PM Approves New Auto Policy With Big EV Push
Pakistan’s car and bike industry has been waiting for months, and now there is finally some movement. Prime Minister Shehbaz Sharif has approved the draft of the new auto policy 2026-31, and the federal cabinet is expected to give its final nod very soon. The policy is set to shape how vehicles are made, priced and sold in the country for the next five years, and it gives a clear push to EV adoption in Pakistan.
For people who are planning to buy an electric bike, scooty or a new car, this is important news. A clear policy means manufacturers can finally plan their production and prices again. In this post, we explain what the new framework includes, how it may affect electric vehicles, and what buyers should do while the final details come out.
What Is the New Auto Policy 2026-31?
The official name is the Automotive and Auto Parts Manufacturing Policy 2026-31. The last policy expired on June 30, 2026, and since then the sector has been working without a clear long-term plan. This gap created a lot of uncertainty. Many companies delayed decisions about new models, local assembly and even price changes.
According to ProPakistani, the PM first held a review meeting on the draft and then approved it. An inter-ministerial committee, led by the law minister, had already studied the draft and suggested several changes before it reached the PM. The draft will now go to the federal cabinet for final approval and implementation.
7 Key Reforms in the Auto Policy Pakistan Draft
The committee has recommended seven broad principles to transform the sector. While the final text is not public yet, the main direction of the auto policy Pakistan draft is clear from the reports:
- More local manufacturing: companies will be encouraged to make more parts inside Pakistan instead of importing them.
- Global supply chains: local auto parts makers should become part of international supply chains.
- Gradual cut in auto tariffs: duties on vehicles may be reduced step by step to improve competition.
- Export targets: the industry will be given targets to sell more abroad.
- New investment: a stable five-year plan is meant to attract fresh investors.
- Higher local value addition: more of the value of each vehicle should be created at home.
- Support for electric vehicles: the policy aims to support the shift towards cleaner EVs.
Quick Summary Table
| Point | Details |
|---|---|
| Policy name | Automotive and Auto Parts Manufacturing Policy 2026-31 |
| Duration | Five years (2026 to 2031) |
| Current status | Approved by PM, cabinet approval expected soon |
| Previous policy | Expired on June 30, 2026 |
| EV focus | Supports adoption of electric vehicles |
| Tariffs | Gradual reduction proposed |
How the Electric Vehicle Policy Part Helps E-Bike Buyers
The electric vehicle policy side of the new framework is the part our readers care about most. Pakistan already has a separate EV policy, but the auto policy decides the wider rules for local assembly, parts and tariffs. When these rules support EVs, local companies can make electric bikes and scooters at a lower cost.
If parts like motors, controllers and battery packs are made locally, the final price of an e-bike can come down over time. You can check current rates on our electric bike price in Pakistan page and compare scooty models on the electric scooter and scooty price guide. A clear policy also helps government programmes like the PM electric bike scheme, because more local supply means faster delivery of bikes to approved applicants.
Will Lower Auto Tariffs Reduce Vehicle Prices?
One of the biggest proposals is the gradual cut in auto tariffs. In simple words, if import duties go down slowly, local makers face more competition and prices can become more reasonable for buyers. However, this will not happen overnight. The reduction is planned in phases, so buyers should not expect a sudden drop in car or bike prices next month.
It is also worth remembering that the government recently raised duties on some bike and car parts. We covered this in our earlier report on new duties on bike parts. The new policy may balance these changes by giving the industry a long-term path, but the exact numbers will only be clear after the cabinet decision.
What Should Buyers Do Now?
If you are thinking about buying an e-bike, there is no need to wait for years. The policy will take time to show results. Here are a few simple tips:
- Check if you qualify for subsidy under the eligibility criteria of current schemes.
- Learn the steps on our how to apply guide and keep your required documents ready.
- Complete your PAVE registration early if a new phase opens.
- Use the PAVE subsidy calculator to estimate your monthly instalment.
Also Read: BYD Pakistan Plant to Start Production Soon | Chery Tiggo 7 Super Hybrid Gets Big Price Cut
Frequently Asked Questions
What is the new auto policy 2026-31?
It is the Automotive and Auto Parts Manufacturing Policy 2026-31, a five-year plan to guide vehicle and auto parts manufacturing in Pakistan.
Has the new auto policy been approved?
PM Shehbaz Sharif has approved the draft. It now needs final approval from the federal cabinet before implementation.
Does the new auto policy support electric vehicles?
Yes. One of its aims is to support the adoption of electric vehicles along with local manufacturing and exports.
Will car and bike prices go down under the new policy?
The policy proposes a gradual cut in auto tariffs, which may make vehicles more affordable over time, but not immediately.
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