WNAM REPORT: A sweeping draft law aimed at overhauling Pakistan’s motor vehicle industry has come under sharp criticism from used car dealers, who say the proposed legislation favors local manufacturers at the expense of consumer choice and competition.
The Motor Vehicles Industry Development Act, 2025, introduced by the Engineering Development Board (EDB), proposes strict regulations for the manufacturing, import, and sale of motor vehicles across the country. The policy mandates new licensing requirements, compliance checks, and broad oversight powers for the EDB, including authority to recall vehicles and enforce safety and environmental standards.
But the All Pakistan Motor Dealers Association (APMDA) says the draft law was created without proper consultation and threatens to “cripple” the used car import market—an important source of affordable vehicles for Pakistan’s middle class.
In a letter to Prime Minister Shehbaz Sharif, APMDA Chairman H.M. Shahzad criticized the bill as “heavily tilted in favor of local assemblers and manufacturers,” adding that it “lacks transparency and fails to incorporate the views of importers, dealers, and consumers.”
Shahzad also questioned the EDB’s authority to regulate commercial imports, arguing that such oversight should remain with the Ministry of Commerce. “The EDB is a technical body with a mandate limited to localization and engineering development,” he wrote.
The draft law would allow only EDB-licensed companies to manufacture parts or import vehicles, and includes detailed labeling requirements for all vehicles sold—conventional and electric. Electric vehicles must specify battery type, performance, and recycling instructions, while all vehicles must indicate chassis numbers, dimensions, capacity, and intended use.
Importers and manufacturers would also be responsible for providing repair and maintenance services, and would be required to recall any vehicle or component deemed unsafe or non-compliant. Failure to do so could result in heavy penalties, including up to three years in prison and fines exceeding PKR 5 million.
Under the proposed law, sellers must also ensure that all contract terms are written in clear, plain language. Ambiguous conditions would be interpreted in favor of buyers.
The APMDA has requested an urgent meeting with the prime minister to propose amendments and demand greater inclusion of stakeholders in the policymaking process.
The association argues that imported vehicles offer better value and quality, and warns that overregulation could limit competition, raise prices, and lead to monopolistic practices in the domestic auto industry.
