Pakistan stalls auto policy overhaul as stakeholders lobby for ICE protection, hybrid incentives and electric vehicle localization.

The new automotive policy, which should have replaced the previous one before its June 30 expiration, sees competing interests as stakeholders lobby for different protections. Legacy assemblers seek protection for their existing internal combustion engine portfolios, arguing that rapid electrification would threaten their investments. Hybrid and plug‑in‑hybrid manufacturers want an extension of tax incentives that ended with the 2021‑26 policy. Electric‑vehicle makers call for policy measures to accelerate adoption to reach 30 % of new sales by 2030, 50 % by 2040 and 100 % by 2050, with a net‑zero transport fleet target by 2060. Parts manufacturers demand stronger localisation requirements from new Chinese hybrid and electric brands, and an immediate reversal of the tariff liberalisation introduced in the current year’s budget, citing loss of investment and foreign‑exchange drain. Pakistan’s goal of producing 500,000 vehicles annually has yet to be met; the industry has reached only slightly above 300,000 units before macroeconomic instability, exchange‑rate depreciation, import restrictions and weakened consumer financing dampened growth. The government must reconcile these demands while pursuing a competitive industry that can meet the 500,000‑unit target and embed electrification, localisation, and investment certainty.