KARACHI, SEP 11 /DNA/ – Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), has welcomed the newly approved Auto Policy 2026 by Prime Minister Shehbaz Sharif. He termed the policy as an achievement that will catalyze modernization, boost domestic manufacturing, and help enhance Pakistan’s footprint in the global automotive value chain.
Mr. Atif Ikram Sheikh appreciated the government’s strategic vision to integrate the local auto parts industry with international markets. He noted that the initiative to attract at least five major anchor auto-parts manufacturing companies will foster a robust manufacturing ecosystem, bringing crucial foreign direct investment and advanced technology to the country.
FPCCI Chief emphasized that the establishment of specialized small and medium-sized enterprise clusters within the automotive sector is a visionary move that will empower local vendors and create thousands of technical jobs.
Mr. Atif Ikram Sheikh lauded the decisive measures taken to incentivize export-oriented production. He highlighted that abolishing duties on equipment and auto parts imported for export purposes will drastically lower manufacturing costs, thereby making Pakistani automotive products highly competitive globally. He further commended the proposed formation of an Auto Parts Export Council, stating that dedicated institutional support is vital for driving sustained export growth and exploring new international markets.
The leadership of the apex trade body also expressed strong support for the policy’s focus on mandatory local value addition and the digitization of approval procedures involving the Engineering Development Board. The President stated that removing bureaucratic hurdles and permitting contract manufacturing will improve operational efficiency and build immense investor confidence. He added that the transition towards green technology is perfectly timed and highly commendable.
Mr. Atif Ikram Sheikh specifically praised the comprehensive incentives introduced for New Energy Vehicles and Electric Vehicles. He pointed out that the reduction of sales tax to 1%, coupled with the complete removal of Federal Excise Duty, Capital Value Tax, and withholding tax on these vehicles, will rapidly accelerate the adoption of clean transportation. He also noted that enhancing the financing limit for electric vehicles to Rs. 10 million will make these modern vehicles far more accessible to the wider public.
Mr. Atif Ikram Sheikh assured the government of the business community’s unwavering support in the successful implementation of the Auto Policy 2026. He reiterated that FPCCI stands ready to facilitate seamless coordination between local manufacturers, global investors, and state regulators to ensure this policy achieves its core objectives of economic revitalization, environmental stewardship, and long-term industrial prosperity.
