In a major regulatory shift, Pakistan will begin enforcing 57 international car safety standards on all locally manufactured vehicles starting October, replacing the current framework of only 17 standards.

The move is part of commitments made under the International Monetary Fund (IMF) program and is aimed at aligning Pakistan’s auto industry with global benchmarks while addressing long-standing concerns about consumer safety.

Key Reforms

• Pakistan Automotive Institute will be established to certify local auto parts.

• Import of Type-D accident vehicles will be banned effective September 30.

• Unverified new vehicles will be prohibited from entering the market.

• Local manufacturers must secure a quality license from their headquarters.

• The Engineering Development Board (EDB) will oversee licensing for all imports and sales.

• Auto companies will be legally required to recall defective vehicles/parts.

• Non-compliance will carry 2–3 years imprisonment and heavy fines.

Additionally, legislation for dumping control and local manufacturing has been finalized to safeguard consumers and strengthen the domestic auto industry.

From 2025 onwards, all vehicles sold in Pakistan will be regulated under the new Motor Vehicle Industry Development Act 2025, marking one of the most comprehensive overhauls of Pakistan’s automotive policy in decades.