The government has taken another major step to comply with International Monetary Fund (IMF) requirements by approving the Motor Vehicles Industry Development Bill 2025 through the Standing Committee.
The move comes as Pakistan’s automobile sector has grown into a market worth more than Rs. 600 billion.
The bill aims to regulate both vehicle manufacturing and imports, ensuring that carmakers adhere strictly to safety standards.
These safety regulations will also apply to imported vehicles. Officials from the Ministry of Industries stated that the implementation of safety laws is one of the IMF’s key benchmarks, and the legislation will soon be enforced.
The draft bill includes strict penalties for violations, proposing fines of up to Rs. 2 million and prison terms of up to three years. The law is also designed to curb consumer exploitation, particularly issues like overpricing and the sale of substandard vehicles.
Authorities emphasized that the main purpose of the legislation is to safeguard human lives by ensuring that quality checks are carried out before vehicles are imported.
During the committee’s discussions, several parliamentarians expressed concerns about the sale of locally assembled cars without basic safety features, such as airbags. Lawmakers criticized manufacturers for compromising on safety while charging high prices.
According to Ministry of Industries officials, 107 manufacturers and assemblers are currently active in the country, collectively producing an estimated 1.8 million vehicles annually.
So far, the government has adopted 17 safety-related regulations to improve the quality of the automobile sector.
