The Automotive Industry Development and Export Policy (AIDEP) 2021-26 has failed to achieve its primary objective of ensuring a 10% mandatory export of vehicles and parts within five years.
According to the Auditor General of Pakistan, neither car manufacturers nor the Ministry of Industries and Production succeeded in boosting exports or protecting consumers.
Inquiry ordered into policy failure
The auditor general has directed a fact-finding inquiry to identify the reasons behind the policy’s collapse. The audit report described the failure as a case of serious negligence by the administration, stressing the need for strong corrective measures in the future.
Manufacturers accused of consumer exploitation
The report highlights that despite collecting full payments, car manufacturers failed to deliver vehicles on time. The widespread practice of charging ‘own money’ and delaying deliveries was termed a “very serious issue.”
Manufacturers also violated the 20% down payment policy, failing to provide complete records of vehicle bookings, deliveries, and refunds. Audit authorities further noted that contractors who failed to meet export targets were not reviewed, despite incentives being offered for early achievement.
Lack of oversight and data collection
According to the document, the Engineering Development Board (EDB) did not collect export data as required. Even more concerning, the report revealed that imports of spare parts were made through illegal channels, while CKD (completely knocked down) kits were allowed without proper EDB approval.
The audit also criticized the absence of an effective mechanism to handle consumer complaints related to late delivery of vehicles.
Administration blamed for weak enforcement
The auditor general stressed that both regulators and manufacturers failed in their responsibilities. While the policy offered incentives for exporters, no accountability was enforced when targets were missed. This lack of oversight, combined with weak regulation, undermined both consumer rights and Pakistan’s auto export ambitions.
