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Pakistan Auto Industry Warns Budget Could Damage Local Manufacturing

Pakistan’s auto industry has been warned that the federal budget could weaken local manufacturing by reducing import duties on completely built vehicles and auto parts. Industry experts believe the move will discourage localisation, increase reliance on imports, and put nearly 1,200 auto parts manufacturers at risk. Stronger safeguards have been urged to protect domestic production, jobs, and long-term industrial growth.

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Automotive Tech & EVs

Pakistan Plans AI-Powered Digital Trade System

The Ministry of Commerce has reviewed proposals for a secure, integrated and AI-enabled digital trade ecosystem in Pakistan. Commerce Minister Jam Kamal Khan held separate meetings with the Pakistan Digital Authority and Sky47 to discuss secure data exchange, local cloud infrastructure and digital transformation. The proposed national digital master plan would establish sector-specific digitalisation roadmaps in collaboration with federal and provincial governments, public institutions and the private sector. Sky47 also presented plans to expand secure data-centre and hosting capacity across Pakistan.

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Automotive Tech & EVs

Pakistan Plans New EV Battery Standards

Pakistan’s Ministry of Industries has directed the Pakistan Standards and Quality Control Authority to develop dedicated safety and performance standards for lithium-ion vehicle batteries. The initiative will support the proposed Next Generation Energy Storage Policy 2026–2033. Existing consumer-grade batteries used in phones and laptops cannot meet the high-voltage and high-capacity requirements of four-wheeled electric vehicles. Advanced testing, certification and industrial safety frameworks will therefore be developed for Pakistan’s expanding EV market.

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Automotive Tech & EVs

PM Shehbaz Urged to Intervene as Auto Plants Run Below 50% Capacity

Immediate intervention has been sought from Prime Minister Shehbaz Sharif by Pakistan’s auto manufacturers and vendors over proposed tariff cuts on completely built-up vehicle imports and delays in the new auto policy. The local industry is being operated at below 50% of its 500,000-unit annual capacity. PAMA warned that nearly 45,000 CBU vehicles are being imported annually, diverting about 18% of the domestic market and increasing the risk of deindustrialisation.

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