Pakistan’s federal cabinet has approved the Motor Vehicles Industry Development Act, the country’s first legislation requiring all motor vehicles, whether assembled locally or imported, to meet minimum safety, performance, and environmental standards.
Cleared initially by the Cabinet Committee on Legislative Cases (CCLC), the bill was ratified on Wednesday and will now move to parliamentary standing committees for review. Once enacted, the law will make it illegal to manufacture, import, or sell vehicles in Pakistan that do not meet the newly established benchmarks.
The new legal framework applies to all vehicles, with the exception of those designed or adapted for military use.
Penalties for Non-Compliance
The law introduces strict penalties to enforce compliance. Violators, including manufacturers, assemblers, and importers, could face jail terms ranging from six months to three years and fines between Rs500,000 and Rs10 million.
Companies that fail to recall defective vehicles or parts could be fined at least Rs5 million or face imprisonment of up to two years. If they ignore recall directives from the Engineering Development Board (EDB), penalties rise to three years in jail or Rs10 million in fines.
A senior cabinet member emphasized that this is the first time the Ministry of Industries and Production has successfully pushed for legally binding safety regulations. “Despite years of consumer complaints about vehicle safety, no concrete legal safeguards existed until now,” the official said.
Pakistan lagging in global vehicle standards
Currently, Pakistan adheres to only 17 of the 163 safety standards established by the United Nations Economic Commission for Europe (UNECE), according to Pakistani media reports. The lack of enforcement has long been criticized by both consumers and parliamentarians, especially in light of the substandard quality of many locally assembled vehicles.
Under the new legislation, any vehicle sold in Pakistan must be accompanied by a certificate of conformity, confirming that it meets the required safety and environmental specifications. Failure to provide this certificate could result in up to six months’ imprisonment or fines of up to Rs500,000.
Regulating Imports and Electric Vehicles
The legislation also lays out conditions for the import of vehicles and components. Only registered companies with vehicle import as their primary business—and that meet specific capital thresholds—will be permitted to operate. However, imports under the baggage and gift schemes will remain exempt.
Looking ahead, the government plans to fully open vehicle imports next year, contingent on the successful implementation of the new safety and environmental standards.
Electric vehicles (EVs) will be required to meet specific safety requirements under the act, including clear labeling on battery type, performance, durability, and recycling procedures. EV components, like all other vehicle parts, must also come with certificates of conformity.
Grace Period and Industry Oversight
Manufacturers and importers will be granted a one-year grace period to bring their operations into compliance. During this time, the Engineering Development Board will oversee implementation and have the authority to order recalls and enforce corrective actions.
If passed by Parliament, the law will significantly tighten regulatory control over an industry that has faced minimal oversight for decades. Supporters say it could be a critical turning point in improving road safety, vehicle durability, and environmental outcomes in Pakistan.