IMF forces Pakistan’s auto industry into high gear with 57 safety rules

ISLAMABAD: Pakistan will enforce strict new safety and quality standards for locally manufactured and imported vehicles from October this year, in line with conditions agreed with the International Monetary Fund (IMF), ARY News reported.

Documents show that from October, locally produced cars will be required to comply with 57 safety standards. At present, only 17 safety standards are applied to vehicles made in the country, which means that an additional forty will have to be adopted in the coming weeks.

To ensure proper implementation, the government plans to establish the Pakistan Automotive Institute which will be responsible for checking the quality of locally manufactured parts.

The import policy for vehicles is also being changed from 30 September. Import of accidental Type D cars will no longer be allowed. Imported vehicles without proper chassis numbers and engine numbers will be banned from entry.

Importers will have to prove details such as seating capacity, load capacity, axle number, safety measures and quality. For electric cars, the import process will also include strict checks on battery life, performance, durability, charging standards and battery recycling.

The federal government of Pakistan has finalised the Motor Vehicle Industry Development Act 2025 to regulate local production and control dumping. Under this law, no unverified new vehicle will be allowed to be sold in the market after 1 October.

All locally manufactured cars in Pakistan will require a licence from the headquarters for quality approval. Each manufacturing plant will need a separate licence for every type of vehicle it produces.

Only companies meeting the legal conditions will be permitted to manufacture vehicles, systems or parts. A licence from the Engineering Development Board of Pakistan will also be mandatory for both manufacturers and importers.

The government of Pakistan has made it clear that from October, the import of poor-quality and substandard vehicles will be completely banned. Any vehicle that fails to meet performance requirements or environmental conditions will not be permitted into Pakistan.

These measures represent a major overhaul of Pakistan’s auto sector and are aimed at raising safety standards, improving local quality, and ensuring compliance with international rules under IMF targets.

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