Business Desk 
Jul 31, 2025
The federal cabinet has approved Pakistan's first law for imposing minimum safety standards for locally manufactured and foreign-imported vehicles.
Notably, the Motor Vehicles Industry Development Act—which received its first approval from the Cabinet Committee on Legislative Cases (CCLC) prior to being approved by the cabinet—lists penalties including 3 years' imprisonment and up to Rs10 million in fines.
For years, consumers and legislators raised questions about the low safety and quality of local vehicles. Pakistan has adopted only 17 of the 163 United Nations Economic Commission for Europe (UNECE) safety standards.
Together with this legislation, vehicle assemblers and commercial vehicle importers will now be legally obligated to meet minimum safety, performance, and environmental standards.
The draft legislation applies to all vehicles in Pakistan, excluding vehicles made for the armed forces. The draft establishes penalties for a number of violations: selling vehicles without registration can entail up to one year in jail or a minimum fine of Rs500,000, not providing a certificate of conformity can entail six months in jail or a maximum fine of Rs500,000, and not adhering to a defective vehicle recall can entail two years in jail or a maximum fine of Rs5 million.
Those who refuse to comply with corrective orders from the Engineering Development Board (EDB) face the heaviest punishment, three years in jail or a Rs10 million fine.
Once enacted, manufacturers and importers will have one year to meet these new safety requirements. The bill also outlines rules for electric vehicles, requiring labels for battery type, performance, and recycling instructions.
