Muhammad Faisal Kaleem

Pakistan’s first-ever motor vehicle law is in the works. The legislation aims to ensure public safety on the roads, reports Wealth Pakistan. The law will apply to all types of vehicles, whether small or large, and whether they are manufactured locally or imported.

The federal cabinet approved the bill for the legislation last month. The bill will be called the Motor Vehicles Act 2025. After the subsequent approval of the federal cabinet, the bill was tabled in the National Assembly (NA) session held in August. The NA had referred the bill to the NA committee on industries and production for further review. The committee, in its meeting held on September 9, approved the bill with the consent of the majority members.   

As per the rules of procedure of the NA, the committee will prepare a report which will be tabled in the NA session for debate. The bill will become part of law when the parliament passes it. According to the bill, a copy of which is available with Wealth Pakistan, the purpose of this bill is to foster motor vehicle industry in Pakistan by specifying enforceable standards in relation to safety, quality and environmental aspects of motor vehicles.

The bill further states that adherence to the prescribed standards will not only enhance road safety and provide better value for money to the domestic buyers but also strengthen the export readiness of locally manufactured vehicles. It also seeks to safeguard consumer rights by mandating robust after-sales service obligations and ensuring protection against unfair contract terms.

The key provisions of the bill include the regulation of manufacturers and commercial importers of motor vehicles, mandatory incorporation and licensing requirements, and obligations to rectify the manufacturing defects or recall vehicles posing significant safety risks. Under the bill, local manufacturers or importers must register a company with the government to assemble or import motor vehicles.

Moreover, such a trader is bound to obtain a license for manufacturing or import purposes from the Engineering Development Board of the Ministry of Industries and Production. The local manufacturer or importer is also bound to meet such minimum paid-up capital requirement as may be, from time to time, fixed by the federal government by notification in the official gazette.

Before approving, the Engineering Development Board will examine whether the set standards are being followed by the local manufacturer or importer. The board will determine minimum safety, quality, performance, environmental, or other standards for compliance. Any manufacturer or importer violating the law will face criminal proceedings.  

A manufacturer found guilty of an offense under this new law will be fined, which could extend to Rs2 million. Deciding penalties will be the sole prerogative of the board. Moreover, the license of the manufacturer or importer could also be cancelled or suspended.

Additionally, direct publicity of a violation for the information of the general public, a section of the public, or members of an association, specifically naming the violator with a gist of the violation, will invoke a fine.

Credit: INP-WealthPk