ISLAMABAD: Pakistani federal ministers, officials and representatives of various organizations held a consultative meeting this week to review and finalize the draft of a new five-year auto policy, the information ministry said, amid concerns from industry stakeholders that the framework could limit localization.

The Automobiles and Auto Parts Manufacturing Policy 2026-31 aims to transform Pakistan’s largely assembly-focused industry toward local manufacturing, exports and open it up to greater competition while aligning it with the National Tariff Policy 2025-30, which envisages gradually lowering tariffs on industrial inputs. The government has held several meetings with parts manufacturers and industry stakeholders over the months as it reviews the draft policy.

However, parts manufacturers have expressed concerns that the proposed tariff changes, especially for new energy vehicles, could undermine localization. Industry stakeholders argue the policy could make imported parts more attractive for buyers rather than parts that are already being manufactured in Pakistan.

A committee comprising the federal ministers for energy, climate change and the prime minister’s adviser on industries and production attended the meeting under Law Minister Azam Nazeer Tarar’s chair. The committee meeting also featured members of relevant ministries, divisions and organizations.

“The committee reviewed, clause by clause, the concerns raised by various ministries and relevant organizations regarding the Auto Policy,” the information ministry said on Thursday. “A comprehensive review of different provisions of the policy and its implementation framework was also undertaken.”

The committee reviewed proposals and recommendations submitted by those ministries and organizations to finalize the auto policy, the statement added. The committee agreed that the policy would be considered clause-by-clause and consultations among ministries and organizations would continue in the next meeting to ensure the policy is finalized after “comprehensive consultation.”

The draft policy is expected to be shared with the International Monetary Fund before being submitted to the federal cabinet for approval.

Razi-ur-Rahman, director general of the Pakistan Automotive Manufacturers Association (PAMA), last week welcomed the government’s ambition to increase exports but said targets alone would not deliver results.

“It is a very good decision by the government to enhance automotive exports, but this cannot be done by desire alone,” he said. “It depends on how the government will support this initiative.”