Senate reviews EPZ reforms, auto policy ahead of IMF discussions

The Senate Standing Committee on Industries and Production on Wednesday reviewed proposed reforms to Pakistan’s Export Processing Zone (EPZ) framework and discussed the upcoming Automotive & Auto Parts Manufacturing Policy 2026–31 as the government works to align industrial policies with commitments under the International Monetary Fund (IMF) programme.

 

Chaired by Senator Saleem Mandviwalla, the committee examined governance issues within the Export Processing Zones Authority (EPZA), including the absence of a permanent chairperson. Members agreed to recommend amendments to the federal government’s rules of procedure to facilitate faster appointments to key leadership positions.

 

The committee also discussed Pakistan’s obligations under the IMF’s Extended Fund Facility (EFF), which include the gradual withdrawal of incentives for EPZs and tighter restrictions on sales from export processing zones into the domestic market. Mandviwalla urged the Ministry of Industries and Production and private-sector stakeholders to formulate a coordinated set of recommendations ahead of the next IMF review.

 

Separately, lawmakers reviewed the draft Automotive & Auto Parts Manufacturing Policy 2026–31, which seeks to promote new energy vehicles (NEVs), enhance local value addition, and expand domestic manufacturing and exports.

 

Industry representatives raised concerns over tariff structures, duties on raw materials, and production costs, arguing that the current framework undermines the competitiveness of local manufacturers. The committee directed stakeholders to formally submit their proposals and announced a joint meeting next week with the Ministries of Commerce and Industries and Production to evaluate possible policy changes.

 

The meeting was attended by members of the committee, senior government officials, the Special Assistant to the Prime Minister, and representatives from the automotive industry.