ISLAMABAD, April 14, 2026 — Pakistan is considering introducing special incentives to promote local manufacturing of electric vehicle (EV) components as part of its upcoming auto policy, officials said on Tuesday.
The proposals were discussed during a meeting between Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan and a delegation of auto parts manufacturers, according to an official statement.
The meeting, attended by senior officials including the Secretary Industries and Production and representatives from the Engineering Development Board, focused on strengthening the domestic automotive sector through localisation and technology adoption.
Haroon said the government’s auto policy would prioritise local production of parts to reduce import dependence and support industrial growth. He added that lowering vehicle prices remains a key policy objective through increased domestic manufacturing and efficiency improvements.
Officials said the Ministry of Industries is compiling a comprehensive list of auto parts that can be produced locally, with plans to provide protection to domestic manufacturers over the next five years to help the sector scale up.
The proposed incentives for EV parts manufacturing are aimed at encouraging investment in emerging technologies and aligning Pakistan’s auto sector with global trends toward electrification.
“Transitioning to electric vehicle technology is essential for maintaining competitiveness in the evolving global market,” Haroon told participants, urging industry stakeholders to adapt to changing technological demands.
Industry officials said targeted incentives could help build a local supply chain for EV components, reduce costs and attract foreign investment in the sector.
The government is also engaging stakeholders to ensure the policy framework is inclusive and responsive to industry needs. Haroon directed the Engineering Development Board to continue consultations with manufacturers and investors.
Prime Minister Shehbaz Sharif is overseeing broader economic reforms aimed at boosting industrial output and exports, with the auto sector identified as a key growth area.
Analysts said the success of the policy will depend on consistent implementation, investor confidence and the availability of financing for new technologies.
They added that incentives for EV components could position Pakistan to benefit from the global shift toward cleaner transport while supporting domestic manufacturing and job creation.