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Auto Policy 2021 Pakistan

This article is all about Auto Policy 2021 Pakistan. Benefits of Auto Policy 2021-2026 and its impact on Car prices after Auto Policy 2021 Pakistan.

The Federal Minister of Industries and Production, Khusro Bakhtiar, has formulated important advertisements for the brand new Auto 2021-26 policy in a press conference today.

By addressing the media, Minister Bakhtiar talked about the following additional features of the new Auto Policy:

The Government has introduced measures to increase the production of vehicles at about 300,000 (3 laces) during the current fiscal year and up to 500,000 (5 laces) by 2025.

In addition, the location of the Automotive parts must be strongly incited.

Affordable Small Cars (Meri Gari Scheme) 

Auto Policy 2021 Pakistan is the next big step in the auto industry. To make small cars more affordable for the mid-level socio-economic class, the following steps have been introduced in the financial budget 2021-22

For vehicles up to 1000 cc, the government removed federal excise duty (EDF) and additional tariffs (ACDs) on locally manufactured cars.

Reduction in Car Prices:

Reduced ACD and FED on all cars.

Price reduction is expected in each vehicle category being manufactured locally. The prices of cars are expected to be reduced as under:

  • Decrease of Rs. 104 458 – RS. 142 388 in the price of cars below 850 cc
  • Decrease of Rs. 112,118 – Rs. 186,375 in cars prices of 1001-1500 cc
  • Decrease of more than RS 169.958 on the price of cars in category 1800cc
  • Decrease of more than 229,458 rupees in the price of cars 2000cc and above

How to Apply for Mari Gaari Scheme in 2021

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The state of the value of 30% has been introduced on raw materials and imported components to be used for the manufacture of vehicles in the country.

Auto Policy 2021 Pakistan

To ensure a quick location, the government updates the localized manufacturing of auto parts every six months.

“Own Money” Mitigation Measures:

  • Rs. 50,000 to Rs. 200,000 taxes in which the first registration is not on behalf of the person who has reserved the vehicle.
  • Mandatory payment of 3% brand by manufacturers on delivery beyond 60 days.
  • Initial maximum payment on the reservation not exceeding 20% ​​of the billing value at the time of booking.
  • Reservation and manufacturing status in real-time.

Safety Measures in Cars:

In order to improve and guarantee road safety, basic safety measures such as brakes, pipes, tires, lights, safety belts, airbags, and collision safety will be satisfied.

17 These targeted regulations will be implemented progressively over a period of the next three years.


The objectives of exports for manufacturers will be achieved up to 10% of the import value by the end of five years of this proposed policy.

Electric Vehicles:

More EVS on the local market would encourage automobile companies to invest in the relevant infrastructure in Pakistan to facilitate EVS. To this interest, the following incentives were provided to the vehicle segment:

  • Customs duty law (CD) on specific parts for electric vehicles to attract 1%
  • 10% CD on the import of CBP EVS

All about Auto Policy 2021-2026

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The exact details of several additional incentives must still be revealed by the government, however, it has been highlighted that the new vehicle prices become effective in the next two days.

However, additional details suggest that the new automotive policy shapes to be a strength for the Pakistani market.

What you think about Auto Policy 2021-2026 let us know in the comments below

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Waqas Afzal

Professionally Mechanical Engineer. Love to try new things. Traveler and Foody. If you have any suggestions you are always welcome.

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