Business & Finance Print edition: 2026-06-11

Leghari-led committee to finalise draft auto policy

Published June 11, 2026 Updated June 11, 2026 06:43am

3 min

By Mushtaq Ghumman

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ISLAMABAD: The Minister for Power, Sardar Awais Ahmad Khan Leghari, is heading an 11-member sub-committee tasked with fine-tuning the draft Auto and Auto Parts Manufacturing Policy in consultation with industry and public-sector stakeholders, including the Tariff Policy Board (TPB).

According to an official notification, the sub-committee has been constituted following a decision taken during the first meeting of the Prime Minister’s Committee on June 4, 2026 tasked to build a consensus on the draft policy and held under the chairmanship of the Deputy Prime Minister on June 8, 2026.

The sub-committee comprises: Sardar Awais Ahmad Khan Leghari, Minister for Power (Chairman); Musadik Malik, Minister for Climate Change (Co-Chair); Haroon Akhtar, SAPM on Industries and Production (Co-Chair); Lt Gen Zafar Iqbal, NC Task Force on Power (Member); Major General Asadullah Cheema, DG SIFC (Member); Saif Anjum, Secretary Industries and Production (Member/ Secretary); Jawad Paul, Secretary Commerce (Member); Jawwad Uwais, Chairman NTC (Member); Dr Najeeb Ahmad Memon, DG Tax Policy Office, Ministry of Finance (Member); Member Policy (Customs), FBR (Member); and any other co-opted members.

The sub-committee has been mandated to review and finalise the draft policy in line with key principles, including accelerating the adoption and local manufacturing of electric vehicles (EVs) in support of national energy security, environmental sustainability, and industrial growth; increasing exports of vehicles and auto parts; maximising local value addition through tariff and non-tariff measures; protecting and generating employment; and preventing the influx of sub-standard or obsolete vehicles and parts while safeguarding consumer interests.

The notification further states that the sub-committee will hold consultations with all relevant stakeholders, including vehicle assemblers and auto parts manufacturers. It is required to submit its recommendations and the finalised draft policy to the main committee by June 15, 2026.

Sources in the Power Division told Business Recorder that the panel held its first detailed meeting on June 9, 2026, lasting over six hours, during which it heard viewpoints from industry representatives and public-sector stakeholders.

“The government’s team listened to existing auto manufacturers, new entrants relying on imported CBU units, and local parts manufacturers; however, no final decisions were made,” the sources said.

According to sources, the new policy is expected to be aligned with the National Tariff Policy 2025–30, which envisages a phased reduction in tariffs on imported Completely Built Units (CBUs). However, the Ministry of Industries and Production has reportedly opposed the tariff rationalisation plan in its current form.

Sources further revealed that the Power Minister is expected to chair another meeting to develop recommendations for submission to the main committee, headed by Ishaq Dar.

Meanwhile, the proposed Customs (Amendment) Bill, 2026 offers duty relief for CKD electric vehicles, but CBU electric commercial vehicles continue to face 30 percent customs duty along with an additional 6 percent ACD. As a result, electric trucks and buses—despite higher FOB/CFR values and greater economic benefits—are taxed more heavily than passenger EVs.

This taxation disparity, particularly during the market development phase, may hinder the adoption of electric commercial vehicles in the country, the sources added.

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