Pakistan unveils new auto policy focusing on cheaper, electric cars

The government unveiled a new auto policy on Saturday that puts cheaper and electric vehicles at its center, the state broadcaster Radio Pakistan reported.

Haroon Akhtar Khan, the prime minister's adviser on industries and production, presented the policy's main elements at a news conference in Islamabad.

Khan said the framework rests on six pillars: lower-cost vehicles for middle and lower-middle income buyers, higher exports, wider use of electric vehicles, greater local manufacturing, improved vehicle safety and greater transparency.

He said customs duties on imports have been cut to bring down production costs, which he expected would make locally built vehicles easier for low-income buyers to afford.

Khan added that lowering the prices of vehicles with engines below 1300cc is a special priority for the prime minister.

He also said new measures have been introduced to deepen localization and boost car exports, and the government has set a target of $6 billion in automobile-related exports over the next five years.

Information Minister Attaullah Tarar, who spoke at the same briefing, said the policy was drawn up in consultation with all relevant stakeholders.

Tarar said helping low-income households is among the government's top goals under the policy, in line with the prime minister's directives.

He also said electric vehicles are both affordable and environmentally friendly.

Pakistan's car market has long been dominated by a small number of local assemblers, and buyers have often complained about the high price of new vehicles.

Governments in several countries have offered incentives for electric vehicles as a way to cut fuel imports and emissions.