Govt to Cap Car Booking Advances At 20% to End On-Money Practices
The government plans to cap car booking advances at 20 percent and introduce measures to curb “On Money” practices under … Read More The post Govt to Cap Car Booking Advances At 20% to End On-Money Practices appeared first on ProPakistani .
The Pakistani government is set to limit car booking advances to 20 percent as part of its new five-year Auto Policy aimed at 2026-31, according to draft policy documents obtained by ProPakistani. This move aims to curb "On Money" practices that inflate prices for buyers who place their orders.
Under the policy, the government intends to safeguard the price agreed upon at the time of booking, thwarting potential price hikes after customers finalize their purchases. Additionally, stricter regulations are proposed for used vehicle imports, including mandatory third-party inspections and after-sales service obligations.
The draft policy seeks to enhance consumer protection while implementing broader reforms within the auto sector. It also suggests acknowledging L6 and L7 urban mobility vehicles as cost-effective alternatives to motorcycles, with a primary focus on boosting their domestic production. Starting from July 2027, automobile manufacturers will face phased and verifiable Minimum Domestic Value Addition Requirements.
Furthermore, the policy recommends adopting an additional 45 UNECE vehicle safety regulations and establishing the Pakistan Automotive Testing Institute. The draft document will be submitted to the Economic Coordination Committee of the federal cabinet for approval at the earliest feasible time.
Written by urgent.news from ProPakistani's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
