In a significant move to improve road safety and regulate Pakistan’s auto industry, the federal cabinet has approved a new law that mandates safety, performance, and environmental standards for all vehicles sold or imported in the country.
The Motor Vehicles Industry Development Act, passed on Wednesday, introduces strict penalties for non-compliance, including jail sentences and heavy fines. It is considered a major step toward modernising Pakistan’s vehicle regulations.
Under the law, all vehicles must be certified for safety and environmental compliance before being sold. Any manufacturer or importer who fails to comply could face up to one year in jail or a fine starting at Rs. 500,000. Not issuing a certificate of conformity could result in a six-month sentence, while ignoring a recall order could lead to three years in jail or a Rs. 10 million fine.
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The Engineering Development Board (EDB) will serve as the key regulatory authority. It can initiate recalls if vehicles or parts pose risks, even if they were previously approved.
The law also restricts vehicle imports to licensed companies with approved capital and automotive import as their main business. However, vehicles imported through baggage or gift schemes will remain outside the law’s scope.
Every vehicle will need to clearly display information such as its weight, size, seating capacity, and intended use. Electric vehicles must comply with specific standards related to battery type, performance, charging, and recycling.
The bill now heads to parliamentary committees for review before it can become law.
