KARACHI: As the current auto policy nears its expiry in June 2026, the government is finalising the Auto Industry Policy 2026-31, with the Engineering Development Board (EDB) holding extensive consultations with vehicle assemblers, parts vendors and importers of used vehicles.

Officials said the new policy will align with the National Tariff Policy (NTP), introduced under Pakistan’s current $7 billion Extended Fund Facility with the International Monetary Fund, which caps tariff rates on finished goods at 15pc and calls for the removal of concessionary SROs. The move marks a shift towards a more open, market-driven automotive sector.

At the same time, the government has allowed the commercial import of used vehicles and is likely to continue baggage and gift schemes for overseas Pakist­anis — a mechanism local assemblers allege is being misused by traders for commercial imports. The rising influx of used vehicles, often undervalued at customs, has intensified competition for locally assembled........

© Dawn Business