ISLAMABAD – The approval of Pakistan’s new five-year auto policy is likely to face further delays as the government has linked its finalisation to consultations with the International Monetary Fund (IMF).
The draft of the new Auto Development and Export Policy has been prepared, but its final approval remains pending until discussions with the IMF are completed. The development may further postpone the launch of the new policy for the automotive sector.
According to credible sources in the Ministry of Industries and Production, the draft policy has been prepared and will be discussed with the IMF review mission during its upcoming visit to Pakistan.
The IMF team is scheduled to arrive in Pakistan on September 23 for review talks. The government is expected to consult the visiting delegation on various aspects of the proposed auto policy before granting final approval.
The delay in finalising the policy could affect the government’s plans for the automotive sector, particularly its objectives related to development, investment and vehicle exports over the next five years.
The new policy is expected to provide a framework for the future growth of the automotive industry and promote export-oriented production. However, its implementation will depend on the outcome of consultations with the IMF and subsequent approval by the relevant authorities.
The government had earlier moved towards finalising the Auto Policy 2026, but the requirement for IMF consultations has now left the policy awaiting final approval.
Further decisions on the policy are expected after the IMF review talks and consultations between the government and the Fund’s delegation.
