Comprehensive auto policy on cards to boost engineering sector, localise tractor production

ISLAMABAD: The government is preparing to unveil a comprehensive Auto and Tractor Policy designed to accelerate localisation, strengthen domestic manufacturing and boost exports, Special Assistant to the Prime Minister (SAPM) on Industries and Production Haroon Akhtar Khan said on Wednesday.

The announcement came during a meeting chaired by the SAPM with Sikandar Mustafa, chief executive officer of Millat Tractors Limited, to review the future direction of Pakistan’s auto and tractor industry. Federal Secretary for Industries and Production Saif Anjum also participated in the discussion, an article by Express Tribune said on Thursday.

Officials reviewed key features of the forthcoming Auto Policy and Tractor Policy, focusing on strategies to promote indigenisation and enhance value addition within the engineering sector. Haroon Akhtar Khan said the policy is being finalised under the guidance of Prime Minister Shehbaz Sharif and aims to provide a forward-looking framework that addresses long-standing challenges faced by manufacturers.

He noted that the new policy will seek to create a balanced environment that supports industrial expansion, encourages higher local content and positions the sector for export-led growth. According to the SAPM, Pakistan’s auto industry has significant untapped potential that can be realised through deeper localisation and stronger domestic supply chains.

During the meeting, Sikandar Mustafa highlighted that Millat Tractors has achieved around 90 per cent localisation in its tractor production. He said the company has also built export capacity and is supplying tractors to international markets, demonstrating the competitiveness of Pakistan’s engineering capabilities.

The SAPM directed the Engineering Development Board to engage all key stakeholders in broad-based consultations to ensure the final policy framework is inclusive, practical and aligned with the goal of sustainable industrial growth.