MoST withdraws NOC for motor vehicles industry bill over PSQCA mandate concerns

The Ministry of Science and Technology (MoST) has withdrawn its No-Objection Certificate (NOC) for the draft Motor Vehicles Industry Development Bill, 2025, raising legal, procedural and technical objections as the Ministry of Industries and Production (MoI&P) maintains that the proposed law has already crossed key approval stages, Business Recorder reported. 

MoST has opposed further movement of the draft legislation at higher forums, saying the bill overlaps with the statutory role of the Pakistan Standards and Quality Control Authority (PSQCA), which was established under the PSQCA Act, 1996.

MoI&P has taken the position that the draft bill was approved by the Cabinet Committee on Disposal of Legislative Cases (CCLC) and later ratified by the Federal Cabinet on July 30, 2025.

The ministry said the bill is currently being considered by the relevant Standing Committee of the National Assembly.

MoI&P also said the process of granting an NOC falls under the Rules of Business, 1973, which require inter-ministerial consultation before a matter is placed before the CCLC.

It said this requirement had already been completed before the bill was moved to the CCLC.

The ministry further stated that decisions of the Federal Cabinet are binding on all divisions, and the bill remains before parliament at the final approval stage.

In support of the proposed law, MoI&P referred to a 2024 study by the Pakistan Institute of Development Economics (PIDE), which identified poor vehicle quality, high production costs, low localisation and lack of competitiveness as major issues in Pakistan’s automobile sector.

The study said Pakistan’s role in global automotive value chains remains limited, with only one in eleven workers in the sector contributing to exports.

It also noted that the automobile sector employs a large workforce but contributes relatively little to manufacturing value addition, leading to economic losses.

According to MoI&P, Pakistan’s motor vehicle exports remain restricted by high production costs, low localisation and quality concerns, making them less competitive in international markets.

The ministry said setting standards for motor vehicles is a specialised function and is linked to consumer protection and export growth.

It said many countries regulate vehicle safety, performance and environmental standards through dedicated legal frameworks and institutions.

MoI&P cited Malaysia, Japan, Australia, the United States and India as examples where motor vehicle standards are enforced through specific regulatory structures, often aligned with United Nations regulations.

The ministry said anti-lock braking systems (ABS), electronic stability control (ESC) and emission standards are mandatory in several jurisdictions.

It said such performance-based rules ensure that new and imported vehicles meet requirements for safety, anti-theft protection and environmental emissions.

MoI&P also noted that standards-setting responsibilities in Pakistan are already divided across different institutions, including the Higher Education Commission (HEC) for education and the Ministry of Climate Change for environmental regulations.

It said the automobile sector also requires a coordinated standards framework.

MoI&P urged MoST to assess the legal and institutional implications of the proposed legislation before taking the matter further.