The government plans to cap car booking advances at 20 percent and introduce measures to curb “On Money” practices under the new five-year Auto Policy 2026-31, according to the draft policy documents available with ProPakistani.
The policy would also protect the price agreed at the time of booking, aiming to prevent buyers from facing higher prices after placing their orders.
The government is also proposing stricter rules for used vehicle imports, including third-party inspection and after-sales service requirements.
The draft policy seeks to strengthen consumer protection alongside wider reforms in the auto sector.
It also proposes recognizing L6 and L7 urban mobility vehicles as affordable alternatives to motorcycles, with a focus on increasing their local production.
From July 2027, manufacturers would face phased and verifiable Minimum Domestic Value Addition Requirements.
The policy also proposes adopting 45 additional UNECE vehicle safety regulations and establishing the Pakistan Automotive Testing Institute.
The draft will be shared with the Economic Coordination Committee of the federal cabinet for approval it the responsible authority’s earliest convenience.
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