The federal cabinet has passed its first law mandating minimum safety standards for all locally assembled and imported vehicles. The Motor Vehicles Industry Development Act, approved by the federal cabinet, introduces penalties of up to three years imprisonment and fines of Rs10 million for violations.

According to The Express Tribune, The law aims to enforce minimum safety, quality, performance, and environmental standards, addressing longstanding concerns about the poor quality of locally assembled cars. Previously, Pakistan only implemented 17 of 163 UNECE safety standards from 1958.

The bill will now go before parliamentary standing committees for review before a final vote. It applies to all motor vehicles except those used by the armed forces. Penalties vary depending on the violation. Selling unregistered vehicles could result in up to one year in jail or a Rs500,000 fine. Failure to issue a certificate of conformity could lead to up to six months imprisonment or a Rs500,000 fine. Failure to recall defective vehicles could result in up to two years in jail or a Rs5 million fine. Finally, failure to comply with Engineering Development Board (EDB) directives could result in a minimum three-year jail term or a Rs10 million fine.

The law also addresses the import of used vehicles, aligning with an IMF condition requiring the removal of quantitative restrictions by July 2025. Initially, this will apply to vehicles less than five years old, subject to meeting safety and environmental standards. The government plans to implement the five-year-old import condition from September and fully open imports next year, contingent on the new safety standards being in place. A one-year grace period is provided for importers and local assemblers to comply.

The law also mandates that all vehicles display key safety information and come with a certificate of conformity. Manufacturers and importers are obligated to recall vehicles posing significant safety risks, facing penalties for failure to do so. The EDB has the authority to order recalls if manufacturers or importers fail to act. Imports under baggage and gift schemes will be exempt.