Islamabad: (RightNow) Prime Minister Shehbaz Sharif has approved the Auto Policy 2026. The policy announcement is expected next week following IMF approval. The committee had approved recommendations related to the auto parts policy.

According to documents, proposals include linking auto parts exports to global value chains. Additionally, the inclusion of 5 major anchor manufacturing companies for exports is proposed.

The government has offered to create SME clusters in the auto sector. Recommendations also include removing duties on imported export auto parts.

The establishment of an Auto Parts Export Council is proposed. Furthermore, mandatory local value addition and contract manufacturing permissions are included.

It is noteworthy that equal facilities for electric vehicles and tax exemptions have been proposed. Under this, a loan limit of 10 million for electric vehicles is suggested.