Pakistan’s auto sector has expressed strong objections to the draft Motor Vehicles Industry Development Act 2025, arguing that the proposed law could stifle industry growth, inflate costs, and even criminalise everyday business practices.
As per reports, industry leaders have raised concerns that the law was drafted without proper consultation with stakeholders and grants extensive powers to bureaucratic bodies, particularly the Engineering Development Board (EDB). They warn that vague and punitive provisions could deter investment, especially as Pakistan seeks to stabilize its economy and attract foreign capital.
One of the key issues with the draft law is its classification of routine matters, such as recalls and warranty disputes, as cognizable offenses that can be enforced by the Federal Investigation Agency (FIA). This provision has been heavily criticized, with automakers arguing that it unfairly equates manufacturers with criminals and could undermine confidence in the industry.
The auto sector also emphasized that existing regulatory frameworks, including the Auto Policy 2021-26, competition law, consumer protection laws, and the Import and Export Control Act, already provide adequate consumer protection. Local manufacturers comply with international safety standards and are implementing practices such as warranties, after-sales service, and recalls as standard procedures.
Industry representatives also pointed out that the EDB lacks the resources to monitor the thousands of workshops nationwide, making such provisions “impractical” and “susceptible to misuse.”
The industry has made it clear that it is not opposed to regulation but is calling for clearer guidelines and better enforcement of existing laws. Stakeholders have called for a more inclusive consultation process with manufacturers, provincial governments, and consumer groups to address regulatory gaps without impeding growth.
