The federal cabinet has approved Pakistan’s first comprehensive legislation for the motor vehicle industry, making it mandatory for all locally manufactured and imported vehicles to meet minimum safety standards. The new legislation is titled the “Motor Vehicle Industry Development Act.”
According to details, violations of the safety and technical regulations under this law may result in up to three years of imprisonment and a fine of up to Rs10 million.
The law aims to enforce safety, quality, efficiency and environmental standards in vehicles. Under it, no vehicle can be sold unless it is registered under the new law and a “certificate of conformity” has been obtained for it.
If a car manufacturer or importer does not follow these standards, they can be imprisoned for one year or a fine of at least Rs 500,000. If the certificate is not issued, they can be imprisoned for six months, while if the defective vehicles are not recalled, they will face two-year jail term or a fine of at least Rs 5 million.
If a manufacturer or importer ignores a recall directive issued by the Engineering Development Board (EDB), the penalty could increase to three years’ imprisonment or a fine of Rs10 million.
The bill will now be sent to parliamentary committees for further review before being presented to Parliament for final approval.
According to the proposed law, only licensed companies whose primary business is vehicle import and which possess the required financial capacity will be allowed to import repairable vehicles. However, vehicles brought in under baggage and gift schemes will be exempt from this legislation.
All vehicles will be required to clearly display technical details such as size, weight, number of seats and mode of use. For electric vehicles, it will also be necessary to disclose battery type, performance, recycling and charging standards.
If a vehicle or part is found to be dangerous, the company will be required to recall it, even if it has already been approved. Otherwise, the EDB will initiate the process of recalling the vehicles itself.
