Global standards shortfall threatens Pakistan’s vehicle export target

ISLAMABAD: Senators in a house committee meeting on Friday expressed concerns that the 7 per cent export target set for automakers is unlikely to be met unless locally-manufactured vehicles adhere to international standards.

During the meeting of the Senate Standing Committee on Industries and Production, chaired by Aon Abbas, a three-member sub-committee was established, led by Saifullah Sarwar Khan, to review the country’s electric vehicle (EV) policy.

Government officials informed the committee that after the government set the export target at 7 per cent for the 2024-25 fiscal year, automakers obtained a stay order from the court, arguing that they would not be able to achieve the target.

Senator Saleem Mandviwalla lamented that vehicles produced in Pakistan do not meet international standards, making it difficult to identify suitable export markets.

Senator Khan added that no manufacturer should be permitted to produce vehicles that do not comply with WP-29 regulations, highlighting the potential danger to lives caused by substandard vehicles.

There are notable disparities between vehicles manufactured in Pakistan and their international counterparts, even when they are the same models.

Pakistani consumers have expressed frustration with locally produced vehicles, citing fewer features and inferior build quality compared to similar models made in Europe. For instance, the base variants of the Toyota Corolla in Pakistan lacked airbags until 2017, despite being marketed as family sedans.

Officials from the Ministry of Industries and Production highlighted that the government introduced the EV policy to address the climate crisis and diversify the automobile sector. Under this policy, customs duties on EV parts are set at 1 per cent, compared to 30 per cent for traditional vehicles.

Additionally, the tariff on EVs is between 5-10 per cent, compared to 25-30 per cent for conventional vehicles. These measures aim to attract global EV manufacturers.

However, Mr Mandviwalla emphasized the importance of developing EV-friendly infrastructure, warning that the sector would struggle to thrive without it.

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