Pakistan is planning to establish a dedicated automotive testing institute with a proposed investment of Rs1.7 billion to strengthen vehicle safety checks, quality verification and certification under the draft Autos and Auto Parts Manufacturing Policy 2026–31.
The proposed Pakistan Automotive Testing Institute (PATI) would support vehicle type approval and help verify whether vehicles meet prescribed safety, quality and environmental standards.
The initiative forms part of a broader proposal to strengthen Pakistan’s automotive regulatory framework.
Section 4.5.7 of the draft policy assigns responsibility for establishing PATI to the Ministry of Industries and Production and the Engineering Development Board (EDB).
The proposal does not envisage the government building every testing facility itself. Instead, PATI would focus on testing infrastructure that private third-party evaluators cannot establish on a commercially viable basis.
The policy remains subject to finalisation. In September 2026, the government’s Press Information Department reported that federal officials were still reviewing the draft policy and examining its legal, financial and administrative implications.
Pakistan Plans to Adopt 45 Additional Vehicle Safety Regulations
The proposed institute is part of a wider effort to bring Pakistan’s vehicle safety and environmental requirements closer to international standards.
According to the draft policy, Pakistan joined the United Nations Economic Commission for Europe (UNECE) 1958 Agreement in April 2020 and has adopted 62 vehicle-related regulations developed under the World Forum for Harmonization of Vehicle Regulations, known as WP.29.
The government proposes adopting 45 additional regulations by the fourth quarter of 2028.
Existing requirements cover vehicle safety and environmental performance, including braking systems, airbags and occupant protection. Wider adoption and enforcement of such standards could help improve regulatory consistency for imported and locally assembled vehicles.
The international framework is designed to harmonise technical requirements for vehicles and related equipment. Readers can consult the UNECE’s official 1958 Agreement documentation for details of the regulatory framework.
The draft policy also calls for a statutory framework covering conformity assessments, market surveillance and vehicle recalls. It proposes using internationally accredited third-party providers for compliance audits where appropriate.
PATI would provide part of the testing infrastructure needed to support these arrangements. However, the institute’s effectiveness would depend on the testing facilities established, the standards applied and the enforcement mechanisms introduced.
Proposed Rs1.7 Billion Budget for PATI
The draft policy proposes allocating Rs1.7 billion to establish the Pakistan Automotive Testing Institute. Its budget appendix sets out the following proposed spending schedule.
| Financial year | Proposed allocation |
|---|---|
| 2026–27 | Rs200 million |
| 2027–28 | Rs500 million |
| 2028–29 | Rs1 billion |
| Total | Rs1.7 billion |
The largest proposed allocation falls in 2028–29, when Rs1 billion is earmarked for the project in the draft budget schedule.
These figures represent proposed allocations rather than confirmation that the money has been released or spent. The final policy, approved budget and subsequent government disclosures will be needed to establish the project’s confirmed financing and implementation timeline.
What the Proposed Institute Could Mean for Car Buyers
A dedicated automotive testing facility could give regulators greater capacity to verify whether vehicles comply with applicable safety and environmental requirements.
For consumers, the potential benefit would be stronger oversight of vehicle standards. For manufacturers and importers, a clearer certification process could help define the requirements that vehicles must satisfy before receiving the relevant approvals.
However, establishing a testing institute alone would not guarantee safer vehicles. The results would also depend on independent assessments, transparent certification procedures, effective market surveillance and action against vehicles that fail to meet applicable standards.
The next steps to watch are the final approval of the Autos and Auto Parts Manufacturing Policy 2026–31, confirmation of PATI’s funding, publication of its implementation plan and clarification of the additional regulations Pakistan intends to adopt.
Until those steps are confirmed, PATI should be understood as a proposed facility under the draft policy rather than an operational testing institute.
