Key points
- A six billion dollar export target has been established for the period spanning 2026 to 2031.
- Prime Minister Shehbaz Sharif recently approved the final draft for submission to the Federal Cabinet.
- Localisation is set to become mandatory with dedicated support for domestic parts manufacturers.
According to a Business Recorder report, Pakistan is pivoting its automotive sector from import-dependent assembly toward export-oriented manufacturing under a newly drafted policy framework.
Key Details
Adviser to the Prime Minister on Industries and Production Haroon Akhtar Khan stated, as reported by Business Recorder, that the Autos and Auto Parts Manufacturing Policy 2026–2031 represents a major structural shift for the industry. The framework projects 17.7 billion dollars in foreign exchange savings through increased domestic manufacturing and mandatory localisation, according to the same report. Key targets include achieving a six billion dollar export volume by 2031, with the auto parts industry expected to contribute 55 percent of that total. Additionally, Business Recorder noted that 2,200 local auto parts manufacturers will receive dedicated support backed by a 2.1 billion rupee vendor upgrade programme.
Context and Impact
The initiative reflects Prime Minister Shehbaz Sharif's vision for a self-reliant and competitive economy, as detailed by Business Recorder. The strategy aims to integrate Pakistani industries into global automotive supply chains while utilizing idle industrial capacity to create new employment opportunities and empower local manufacturers.
Summary and What Next
With the final draft now approved by the Prime Minister, the framework awaits formal consideration and approval by the Federal Cabinet. Further implementation details will emerge as the policy moves through the final governmental approval stages.