IMF Conditions Push Pakistan to Enforce Stricter Vehicle Safety Standards

Pakistan’s auto industry is set to face major changes from October this year as new regulations tighten safety and quality requirements for both locally manufactured and imported vehicles. The measures come in line with commitments made under IMF conditions.

According to official documents, locally assembled cars currently meet only 17 safety standards. From October, manufacturers will be required to comply with 57 safety standards, adding 40 new mandatory checks. To ensure compliance, the government will establish the Pakistan Automotive Institute to monitor and test local auto parts.

The import of “accidental type D” vehicles will be banned, while the country’s Import Policy Order will be revised effective September 30. Furthermore, from October 1, unverified new cars will not be allowed for sale in the market.

The federal government has prepared the Motor Vehicle Industry Development Act 2025, which mandates local manufacturers to obtain licences from the Engineering Development Board (EDB) for each type of vehicle they produce. Importers will also need valid licences to bring vehicles into Pakistan.

The new rules require detailed verification of imported vehicles, including chassis and engine numbers, seating capacity, load capacity, axle count, and safety features. For electric vehicles, battery life, durability, performance, charging standards, and recycling systems must be tested before approval.

From October 1, the import of substandard or poor-quality vehicles will be completely banned. Vehicles failing to meet environmental or performance standards will not be permitted for entry into Pakistan.

The government says these reforms aim to improve road safety, control dumping, and encourage higher-quality local manufacturing.