Govt unveils new auto policy aimed at promoting EVs, boosting localisation

Tarar added: "The new auto policy aims to promote innovation, value addition and localisation in the domestic automobile industry to create employment opportunities and enable vehicle exports. The promotion of electric vehicles will help reduce carbon emissions and the petroleum import bill, while incentives have also been introduced for setting up charging stations.

"نئی آٹو پالیسی میں تمام اسٹیک ہولڈرز کی مشاورت، ٹیکنیکل ڈیٹا کے تجزیے اور دنیا کے مختلف ماڈلز کا جائزہ لیا گیا۔مقامی صنعت میں جدت، ویلیو ایڈیشن اور لوکلائزیشن کو فروغ دیا جائے گا تاکہ روزگار کے مواقع پیدا ہوں اور گاڑیوں کی برآمدات ممکن ہوں۔الیکٹرک وہیکلز کی حوصلہ افزائی سے…pic.twitter.com/tnZWMIrvtO— Attaullah Tarar (@Tarar.

Attaullah)November 7, 2026Tarar added that the new policy focused on promoting electric motorcycles and scooters, adding that their adoption was essential for tackling environmental pollution and also securing economic benefits through carbon credits.

The minister explained the shift towards electric vehicles with the need to reduce Pakistan’s reliance on imported fuel, further adding that the rising fuel import bill placed an excessive burden on the economy and ordinary people.

“If we reduce the fuel import bill, the resources saved can be diverted towards public facilities, infrastructure, healthcare and education,” he stressed.#Live: Minister for Information and Broadcasting@Tarar. Attaullahand Advisor to the Prime Minister on Industries Haroon Akhtar Khan are addressing a news conference in Islamabad#News#Radio.

Pakistanhttps://t.co/FtjphpSVMN— Radio Pakistan (@Radio. Pakistan)November 7, 2026While reflecting on the significance of localisation, the minister said the auto policy sought to encourage manufacturers to establish production facilities in Pakistan and make vehicles for both domestic consumption and export.

“Unless vehicles are manufactured locally and exports begin, the country will not reap the full benefits of this sector in terms of investment and employment,” Tarar said.وفاقی وزیر اطلاعات و نشریات عطاء اللہ تارڑ نے کہا ہے کہ نئی آٹو پالیسی کے تحت الیکٹرک وہیکلز کو خصوصی مراعات دی گئی ہیں، مقامی سطح پر گاڑیوں کی تیاری اور برآمدات کو فروغ دیا جائے گا جبکہ عام آدمی کو سستی، معیاری اور ماحول دوست سواری کی فراہمی یقینی بنائی جائے گی۔#Auto.

Policypic.twitter.com/VA9h66ouyG— APP (@appcsocialmedia)November 7, 2026He further underlined that decades of protection for the local automobile industry through high import duties had not delivered the "expected improvements" in innovation, value addition and vehicle quality for consumers in Pakistan. “The protection extended to the local industry was meant to ensure better quality, innovation and facilities for ordinary consumers.

Unfortunately, the industry did not make the progress expected of it,” the minister remarked. He said the policy also kept the needs of lower-income consumers into consideration, with petrol-powered vehicles below 1,000cc remaining outside the proposed changes affecting the segment.

Tarar further highlighted incentives for electric vehicle manufacturing and charging infrastructure, including customs duty relief for charging stations and a reduction in sales tax. “Just as Pakistan witnessed a solar energy revolution, this policy can help bring a similar transformation in the transport sector,” he stated.