Prime Minister Shahbaz Sharif approved Auto Policy 2026.

According to sources, the auto policy will be announced next week after approval from the IMF.

It should be noted that the recommendations were approved by the Committee on Auto Parts Policy.

According to the document, to increase exports of auto parts, it is proposed to link up with global value chains and bring in 5 major anchor manufacturing companies for exports.

It has been proposed to create SME clusters in the auto sector and to abolish duty on import of exported auto parts.

It has been proposed to set up an Auto Parts Export Council, mandate local value addition, permit contract manufacturing in the auto industry and digitize the EDB approval process.

It has been proposed to provide equal facilities for electric vehicles, only one percent sales tax on new energy vehicles, abolition of FED, CVT and withholding tax and loan limit for electric vehicles to 1 crore.