The Pakistan Automotive Manufacturers Association has asked the secretary of Industries and Production to share the draft of the proposed Auto Policy with the industry before it is finalised. The request comes as assemblers react to reports that the next five year framework could attach punitive consequences to steep export targets.
PAMA Director General Razi ur Rahman said manufacturers would rather see incentives, facilitation and a predictable policy framework than penalties if export goals are missed. The association wants a chance to review the text and give constructive feedback before the document moves to final approval.
The message matters for anyone watching new cars in Pakistan, because industrial policy shapes localisation, investment and eventually what reaches showrooms in PKR terms.
What PAMA is asking for
According to the association, the industry is unsettled by reports that a draft of the new Auto Policy has already been prepared and may soon be presented to the Prime Minister. PAMA has therefore asked the Industries secretary to place the draft with manufacturers at the earliest, preferably before that submission.
Razi ur Rahman stressed that meaningful consultation now would help produce a policy that is ambitious in its objectives and practical in its implementation. He said the industry remains committed to working with the Ministry of Industries and Production and the Engineering Development Board on a framework that strengthens the domestic sector, encourages investment and localisation, and gradually positions Pakistan as a competitive manufacturing and export base.
In plain terms, PAMA is not arguing against exports. It is asking to see the draft and to shape the export chapter through incentives rather than threats.
Why export targets worry manufacturers
PAMA says reports circulating around the draft point to punitive measures if manufacturers fail to hit steep export targets. Those reported measures include incremental tariffs and even cancellation of manufacturing licences.
The association argues that export development is a long term process. It requires investment in technology, product development, localisation, economies of scale, international certifications, market development and competitive supply chains. Razi ur Rahman also noted that export performance depends on factors outside any single plant gate, including international market conditions, exchange rates, trade agreements, logistics and the overall business environment.
That caution sits against a wider government push for higher automotive exports under the proposed Auto and Auto Parts Manufacturing Policy for 2026 to 2031, which is intended to succeed the Auto Industry Development and Export Policy that covered 2021 to 2026. Earlier official briefings have also described higher national export ambition under review, but the final percentages and penalty design have not been published as notified law.
Readers who want deeper background on how export linked rules can affect trade and investment debates can read our earlier guide on Auto Policy export rules and related trade risks.
What is still a draft
This distinction is essential for buyers and dealers alike. The Auto and Auto Parts Manufacturing Policy for 2026 to 2031 is still being finalised. It is not yet an enacted statute that automatically rewrites every invoice.
Official government material from mid September 2026 confirms that a high level committee continued clause by clause review of the draft and agreed that consultations among ministries and organisations would continue before finalisation. That process was chaired by Federal Minister for Law and Justice Senator Azam Nazeer Tarar, with other federal ministers and the Prime Minister adviser on Industries and Production among those involved.
Until the government notifies the final policy and any required legal instruments, reported export ratios, licence penalties, tariff linkages and incentive packages remain proposals under debate. They should not be treated as confirmed showroom rules.
What is already law for buyers
Buyers should separate draft industrial policy from tax law that already applies.
As of September 2026, qualifying locally manufactured hybrid electric vehicles with engines up to 2000 cc moved back under an effective 18 percent sales tax framework after a Finance Division notification, SRO 1525 of 2026, took effect from 13 September 2026. That change followed a period earlier in the fiscal year when many affected hybrids faced a much higher sales tax treatment after earlier concessions ended.
Separately, specified locally assembled electric vehicle relief and related CKD related relief under the FY2026 to 2027 tax measures continue through 30 June 2027. Those are current tax positions. They are not the same thing as unfinished Auto Policy headlines.
Our detailed explainer on hybrid and EV taxes that are law versus draft walks through that distinction model by model. Shoppers comparing hybrid crossovers can also check current listings such as the Toyota Corolla Cross, then compare cars side by side before budgeting in PKR.
What Pakistani car buyers should understand
First, PAMA wants the draft shared for consultation. That request does not by itself change prices, duties or booking terms.
Second, reported penalty ideas such as higher tariffs or licence cancellation for missed export targets are industry concerns about a draft, not confirmed final rules. Treat every leaked percentage with care until the notified policy appears.
Third, export pressure on assemblers can eventually influence model allocation, investment timing and competition. It does not automatically cut or raise the ex factory price of the car you are looking at this week.
Fourth, running costs still matter more day to day than draft policy chatter. Check live petrol and diesel prices in Pakistan and confirm whether any quote is ex factory or on road before you sign.
Fifth, if a salesperson promises a future Auto Policy tax cut or financing perk that is not already in the Finance Act or an operative notification, ask for the legal instrument in writing. A draft is not an invoice.
PAMA’s letter keeps the pressure on transparency. For Pakistani households, the practical rule remains simple. Follow what is already law, watch the final Auto Policy when it is notified, and verify every PKR figure with the authorised manufacturer or dealer before you book.