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Committee Questions Oversight of Pakistan’s Auto Quality Standards | TaxHelpLine

Committee Questions Oversight of Pakistan’s Auto Quality Standards

01-Jul-2026
Committee Questions Oversight of Pakistan’s Auto Quality Standards

The National Assembly Standing Committee on Industries and Production has expressed serious concerns over the absence of a dedicated regulatory and oversight framework responsible for ensuring quality standards for locally manufactured vehicles, motorcycles, electric vehicles (EVs), and automotive parts in Pakistan.

During a meeting chaired by Syed Hafeezuddin, the committee reviewed the performance of the domestic automotive industry, with particular focus on the manufacturing standards applicable to conventional vehicles, electric vehicles, electric motorcycles, and related components.

Committee members observed that no specialised regulatory authority currently exists to independently monitor, inspect, and enforce quality standards for vehicles and auto parts produced within the country.

Chairman Syed Hafeezuddin questioned officials of the Engineering Development Board (EDB) regarding the board’s oversight responsibilities over motorcycle manufacturing facilities. Referring to his personal visits to three manufacturing units, he stated that the production standards observed at those facilities were unsatisfactory and raised concerns regarding product quality.

Members further highlighted that inadequate manufacturing and safety standards could present significant public safety risks, particularly in the case of electric vehicles, electric motorcycles, battery systems, and charging equipment. The committee noted that battery-related incidents, including thermal failures or explosions, could leave users with little opportunity to respond, underscoring the need for effective regulatory oversight.

The committee also raised broader concerns regarding the quality of locally assembled passenger vehicles available in the domestic market.

During the proceedings, the chairman remarked that Pakistan’s automobile industry appeared to be concentrated among a limited number of manufacturers and questioned whether the licensing agreements governing the operations of Toyota, Suzuki, and Honda in Pakistan contained any enforceable provisions relating to vehicle quality standards and manufacturing compliance.

The matter was referred to Asim Ayaz, the senior-most Engineering Development Board official present at the meeting.

Responding to the committee, Ayaz stated that the automobile manufacturers had established their operations in Pakistan prior to the creation of the Engineering Development Board. He further informed the committee that the EDB did not possess information regarding the authority that originally granted approval for the manufacturing plants or the specific terms and conditions governing those approvals.

Following the discussion, the committee directed the Ministry of Industries and Production to obtain and present the original licence agreements executed with the automobile manufacturers at its next meeting, enabling members to examine the regulatory framework, operational obligations, and quality assurance provisions applicable to the sector.

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