ISLAMABAD:
In a significant development, the federal cabinet on Wednesday approved Pakistan’s first law to ensure minimum safety in locally assembled and imported cars, proposing up to three years’ imprisonment and fines of up to Rs10 million for violators.
The Motor Vehicles Industry Development Act was first cleared by the Cabinet Committee on Legislative Cases (CCLC) and then ratified by the federal cabinet. A cabinet member said the law aims to enforce minimum safety, quality, performance, and environmental standards for all vehicles manufactured or imported into Pakistan. This will be the first legislation mandating vehicle assemblers and all commercial importers to meet minimum safety standards. Pakistan has so far implemented only 17 of the 163 United Nations Economic Commission for Europe (UNECE) standards from 1958.
Despite longstanding complaints by consumers and parliamentarians about the poor quality of locally assembled cars, this is the first time the Ministry of Industries and Production has recommended legally binding minimum safety standards for vehicle users’ protection.
With cabinet approval secured, the bill will now be laid before parliamentary standing committees for review. These committees can amend any clause before the bill is tabled for voting in both houses of Parliament.
The proposed law will apply to all motor vehicles in Pakistan, except those made or adapted for use by the armed forces.
Violators, including manufacturers, assemblers, or importers, could face jail terms of six months to three years and fines between Rs500,000 and Rs10 million, the draft bill states.
During CCLC discussions, some members opposed jail terms for violators, but the industries ministry stood by its proposal, according to sources privy to the discussions.
Once enacted, no one will be allowed to sell a vehicle without first registering under the new law. Anyone manufacturing, importing, or offering for sale a vehicle in violation of the law could face up to one year in jail or a fine of at least Rs500,000, or both.
Failure to issue a certificate of conformity will result in up to six months’ imprisonment, or a fine of up to Rs500,000, or both.
Another clause states that anyone who fails to recall a defective vehicle, part, or component could face up to two years in jail or a fine of no less than Rs5 million, or both.
Failing to take corrective action when directed by the Engineering Development Board (EDB) will lead to a minimum three-year jail term or a Rs10 million fine, or both.
An International Monetary Fund (IMF) condition also imposes that all legislation needed to lift quantitative restrictions on importing used vehicles be submitted by July 2025. This will initially apply to vehicles less than five years old, subject to meeting safety and environmental standards.
The government now plans to implement the five-year old import of vehicle condition from September and fully open imports next year, provided the minimum safety and environmental standards under the new legislation is in place. The bill proposes a one-year grace period from enactment for importers and local assemblers to comply with safety requirements.
The law states that no person shall import motor vehicles, parts, or components requiring repair and maintenance unless they are a registered company, have vehicle import as their main business, meet minimum paid-up capital set by the government, and obtain a license from the EDB.
Imports under the baggage and gift schemes will be exempt, according to officials.
The bill also mandates all manufacturers and importers to ensure their vehicles, components and parts do not pose safety risks to users or others.
No vehicle may be sold unless it displays key details such as height, length, weight, intended use, seating and load capacity, number of axles, and other information the EDB deems necessary for safety and user convenience.
Similarly, electric vehicles must display information about battery type, performance, durability, recycling instructions, and off-board charging standards.
All vehicles, components, and parts must come with a certificate of conformity before being put up for sale.
Manufacturers and importers will also be obligated to recall any vehicle or part that poses a significant safety risk, whether or not it meets the type approval or relevant standards.
Failure to issue a voluntary recall could result in a Rs5 million fine and up to two years’ imprisonment.
If the EDB finds a safety risk and the manufacturer or importer fails to act, the authority may order a recall. If that order is ignored, the board may recall the vehicle or part itself through a surveillance agency or other means.
