Govt announces auto policy with focus on cheaper vehicles, EVs

The federal government announced a new auto policy on Saturday, with a primary focus on making vehicles more affordable and promoting electric vehicles (EVs). Information Minister Attaullah Tarar and Prime Minister's Adviser for Industries and Production Haroon Akhtar Khan unveiled the policy during a press conference in Islamabad.

Akhtar revealed that extensive work was invested in crafting the policy, with Prime Minister Shehbaz Sharif dedicating significant time to its development. The policy is structured around six key pillars: affordable vehicles for the middle and lower middle class, exports, localisation, vehicle safety, EV promotion, and transparency.

Sharif introduced a tariff policy aimed at reducing the cost of production and import expenses for raw materials. The policy's objective is to gradually lower the prices of all vehicles, except luxury models, as duties on completely built units and assembly plants decrease each year, leading to competitive tariffs within five years.

Information Minister Tarar noted that the new policy was formulated through consultations with all stakeholders, analysis of technical data, and a review of global models. He emphasized that promoting EVs will decrease carbon emissions and the oil import bill, while also providing incentives for setting up charging stations. The government views this initiative as a significant step towards offering Pakistani citizens affordable, high-quality, and environmentally friendly transportation.