Ministries clash over Motor Vehicles Development Bill, 2025

ISLAMABAD: The Ministry of Industries and Production (MoI&P) and the Ministry of Science and Technology (MoST) have reportedly locked horns after the latter withdrew its No-Objection Certificate (NOC) for the draft Motor Vehicles Industry Development Bill, 2025, citing serious legal, procedural, and technical concerns.

According to official documents available with Business Recorder, the MoST has opposed further processing of the proposed legislation at higher forums, arguing that the bill duplicates the statutory mandate of the Pakistan Standards and Quality Control Authority (PSQCA), established under the PSQCA Act, 1996.

The MoI&P, however, maintains that the draft bill has already been approved by the Cabinet Committee on Disposal of Legislative Cases (CCLC) and subsequently ratified by the Federal Cabinet on July 30, 2025. It is currently under consideration by the relevant Standing Committee of the National Assembly.

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The ministry further argued that the concept of granting an NOC is governed by the Rules of Business, 1973, which require inter-ministerial consultation prior to submission to the CCLC —a requirement it claims has already been fulfilled. It added that Cabinet decisions are binding on all divisions; therefore, the bill remains under parliamentary consideration at the final stage of approval.

Highlighting broader concerns, the MoI&P referred to a 2024 study by the Pakistan Institute of Development Economics (PIDE), which identified poor vehicle quality, high production costs, low localization, and lack of competitiveness as key issues plaguing Pakistan’s automobile sector. The study noted that Pakistan’s share in global automotive value chains remains limited, with only one in eleven workers in the sector contributing to exports.

It further stated that the automobile industry, despite employing a significant workforce, contributes relatively little to overall manufacturing value addition, resulting in considerable economic losses. Pakistan’s motor vehicle exports remain constrained due to high production costs, low localization, and quality concerns, making them uncompetitive in global markets.

The MoI&P emphasized that setting quality standards for motor vehicles is a highly specialized function and a key factor for consumer protection as well as export growth. Internationally, national standards are established by specialized government bodies to ensure safety, performance, and environmental compliance.

The ministry cited examples from Malaysia, Japan, Australia, the United States, and India, where motor vehicle standards are regulated through dedicated legal frameworks and institutions, often aligned with United Nations regulations.

Features such as anti-lock braking systems (ABS), electronic stability control (ESC), and strict emission standards are mandatory in many jurisdictions.

These performance-based standards ensure that new and imported vehicles meet stringent requirements for safety, anti-theft measures, and environmental emissions, often harmonized with international UN regulations.

In Pakistan, the memorandum noted, standards-setting responsibilities are fragmented across various institutions, such as the Higher Education Commission (HEC) for education and the Ministry of Climate Change for environmental regulations. It suggested that a similarly structured and coordinated approach is needed for the automobile sector.

The MoI&P concluded by urging the MoST to carefully evaluate the legal and institutional implications of the proposed legislation before proceeding further.

Copyright Business Recorder, 2026