ISLAMABAD: Talks between the Pakistan government and the International Monetary Fund (IMF) on the proposed new auto policy remained inconclusive, ARY News reported on Friday, citing sources.
The discussions are part of the IMF’s review of Pakistan’s 37-month, $7 billion Extended Fund Facility (EFF), approved in September 2024, along with a separate review of the $1.4 billion Resilience and Sustainability Facility (RSF).
A successful EFF review could unlock around $1 billion for Pakistan, while the RSF review could release approximately $200 million, taking the potential combined disbursement to nearly $1.2 billion.
According to sources, the IMF has raised objections to certain provisions of the proposed auto policy. The government is expected to brief the Economic Coordination Committee (ECC) and the federal cabinet on the concerns raised by the Fund.
Following consultations, the government will make necessary changes to the draft policy, sources said. The revised document will then be finalised in consultation with local automobile manufacturers, importers and the IMF.
The government has also briefed the IMF on proposals aimed at reducing vehicle prices.
The proposed Auto Policy 2026–2031 places a particular focus on electric vehicles (EVs), with special incentives and significant tax reductions proposed to promote their adoption.
The policy aims to encourage the development and expansion of the electric vehicle sector as part of the government’s broader objectives for the automotive industry.