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Pakistan’s draft Auto and Auto Parts Manufacturing Policy 2026–31 is reportedly awaiting additional data sought by the International Monetary Fund (IMF), according to an October 2, 2026, Dunya News report citing unnamed sources. The report does not say what data the Fund requested. Pakistan’s official September updates confirm the draft was still under review and consultation; they do not announce approval or confirm the reported IMF request.

What is known about the reported IMF request?

Dunya News reported on October 2 that Pakistan and the IMF did not reach full agreement on the draft during economic review talks, and that the Fund sought additional data before the draft proceeds for Cabinet approval. The report does not identify the data requested, and the IMF documents cited here do not independently confirm that request. Dunya News’ report is therefore the basis for the claim, not an official public explanation from the IMF or Pakistan’s government.

What is the draft policy’s official status?

Pakistan’s Press Information Department said a committee reviewed the draft clause by clause on September 16 and 17, 2026. Chaired by Federal Minister for Law and Justice Senator Azam Nazeer Tarar, the committee considered ministry concerns, stakeholder proposals, and legal, financial, and administrative issues. The releases say consultations would continue before the policy was finalized; they do not say it had been approved. The September 16 release and the September 17 release describe the review.

How does the policy fit Pakistan’s IMF commitments?

An IMF country report published in 2026 records Pakistan’s commitment to share the then-advanced-stage auto-sector policy with the Fund by the end of April 2026, before Cabinet approval. It says the policy was to phase out Additional Customs Duties (ACDs) and Regulatory Duties (RDs), and substantially reduce Customs Duty (CD) rates by FY30 in line with broader tariff-reduction commitments. That record documents the program commitment at the time; it does not establish the contents of the October draft or show that the IMF agreed to it. IMF Country Report 26/101 provides this context.

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A separate 2025 IMF report describes wider tariff reforms, including consolidation of customs-duty slabs and phased duty reductions, as well as commitments concerning auto-sector inputs and used-vehicle imports. It records a National Tariff Policy target for Pakistan’s weighted average applied tariff to fall from 10.6% in FY25 to 7.4% by FY30. That is a national tariff-policy projection, not an estimate of the draft auto policy’s effect. IMF Country Report 25/332 sets out those broader commitments.

Which draft details are being reported, but remain unconfirmed?

Current media accounts describe possible tax changes, export requirements, standards, and foreign-exchange savings. The full draft text is not in the official releases cited here, so these should be treated as reported proposals—not enacted rules, confirmed government figures, or IMF-approved measures.

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Reported item What media reports say Status
Vehicle taxes and exports Dunya News says officials briefed the IMF on a proposed 1% sales tax for electric vehicles and an increase to 18% for other hybrids, and discussed raising auto-sector exports above $3 billion. Reported by Dunya News citing sources; not confirmed in the cited official documents. These are not established tax rates or an approved export target. Source
Vehicle and parts export targets PhoneWorld reports carmakers would have to export 4% of production in 2026–27, rising to 20% by 2030–31; auto-parts export targets would rise from 5% to 15%. Reported as draft provisions by PhoneWorld; not confirmed in the cited official documents. Source
Vehicle standards PhoneWorld reports adoption of 62 global vehicle standards and 45 additional standards by 2029. Reported by PhoneWorld as a draft provision; not confirmed in the cited official documents. Source
Foreign-exchange savings PhoneWorld reports projected savings of around $17 billion during 2026–31. A media-reported projection, not an independently established outcome or official estimate in the cited documents. Source
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What priorities and trade-offs are at stake?

Pakistan’s Senate committee account describes the draft as intended to promote New Energy Vehicles (NEVs), domestic value addition, local manufacturing, and exports. Industry representatives raised concerns about tariff structures, high duties on raw materials, and cost disadvantages for domestic producers. The committee called for stakeholder concerns to be submitted formally and for further inter-ministerial discussion. The Senate of Pakistan’s account records those priorities and concerns.

  • Affordability and import access: Lower duties may affect access to imported vehicles and inputs, but no published analysis here establishes how prices would change.
  • Local producers and parts suppliers: Protection can coexist uneasily with the cost of duties on raw materials; the Senate account confirms that industry representatives raised this issue.
  • Exports: Export ambitions appear in reported draft details, but targets and their likely effects remain unconfirmed.
  • NEVs: Their promotion is an identified policy aim; the reported tax treatment is not yet an official, finalized rule.

Will the draft change vehicle prices, taxes, or import duties?

It is not possible to establish that from the available official material. The draft’s final text, detailed duty schedule, and an official explanation of the reported IMF request are not provided in the cited sources. Reported tax rates and export targets should not be treated as current law, and the national tariff figures in the IMF’s 2025 report do not calculate the effect on vehicle prices.

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