ECC Defers Review of Imported Vehicle Standards Amid PSQCA Mandate Dispute
ECC reviews overlapping standards and regulatory functions for imported vehicles in Pakistan.
The Economic Coordination Committee (ECC) has deferred a proposal to review environmental, safety and quality standards for imported vehicles after the Ministry of Science and Technology raised concerns about overlapping regulatory functions.
The ministry asked the ECC to revisit its September 24, 2025 decision on automobile standards. It argued that the decision created duplication with the statutory responsibilities of the Pakistan Standards and Quality Control Authority (PSQCA).
The ECC deferred the agenda after the Ministry of Industries and Production informed the forum that a committee under the Minister for Climate Change was already examining the issue.
The ECC directed the relevant ministries to submit their views before the matter is brought back for consideration.
Science Ministry Seeks Changes
The Ministry of Science and Technology asked the ECC to modify its earlier decision covering the formulation of environmental, safety and quality standards, along with testing and certification requirements for imported vehicles.
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It also sought amendments to relevant Ministry of Commerce notifications. These include Clause 11 of SRO 61(1)/2026, issued on January 15, 2026, and Clause (xvi) of SRO 1895, issued on September 30, 2025.
The ministry also proposed withdrawing a September 30, 2025 notification issued by the Ministry of Industries and Production concerning environmental, safety and quality standards for imported vehicles.
According to the ministry, these measures could overlap with functions assigned to PSQCA under existing laws and rules.
Dispute Over Inspection Agencies
The Science Ministry also asked the Ministry of Commerce to withdraw decisions made during a March 16, 2026 meeting concerning automobile pre-shipment inspection agencies.
Under the arrangement in question, PSQCA would need a no-objection certificate from the Engineering Development Board (EDB) to register inspection agencies.
The Science Ministry argued that PSQCA already has the legal authority to register such agencies. It cited Section 8(xxiii) of the PSQCA Act and SRO 2443, dated December 16, 2025.
The ministry said removing the overlap would prevent encroachment on the statutory mandate of PSQCA and the Ministry of Science and Technology.
PSQCA’s Automobile Standards Role
The ministry told the ECC that PSQCA operates under the administrative control of the Ministry of Science and Technology and serves as Pakistan’s national standards body.
PSQCA’s automobile division says it develops Pakistan Standards for road vehicles, agricultural tractors and farm machinery. Its automobile work includes national standards committees covering passenger cars, commercial vehicles, electric vehicles, vehicle safety and auto parts.
The ministry also referred to the PSQCA Act 1996 and the Rules of Business 1973 in support of its position that standards formulation falls within PSQCA’s mandate.
It said PSQCA has already undertaken work on standards for buses, cars and tractors. The ministry also noted that the federal cabinet recently approved standards for public-service buses developed through PSQCA.
Earlier ECC Decision
The dispute stems partly from the ECC’s September 24, 2025 decision allowing commercial imports of used vehicles.
At the time, the ECC approved amendments to the Import Policy Order 2022 and required imported used vehicles to comply with prescribed environmental and safety standards. The decision initially allowed vehicles up to five years old until June 30, 2026.
The ECC also approved a 40% regulatory duty on commercially imported used vehicles below five years of age, with the duty scheduled to decline gradually thereafter.
The Ministry of Science and Technology later argued that implementation of the standards framework created overlapping responsibilities among government institutions.
MVIDA Issue Also Raised
The Science Ministry told the ECC that the Ministry of Industries had submitted the draft Motor Vehicles Industry Development Act 2025 for review.
It said the Science Ministry had initially issued a no-objection through an office memorandum dated July 18, 2025. However, it later withdrew that position through a letter dated April 16, 2026, citing concerns over consistency with the prevailing legal framework and the respective mandates of the EDB and Ministry of Industries.
The ministry said the ECC should consider the broader regulatory framework before assigning responsibilities related to vehicle standards, testing and certification.
The ECC ultimately deferred the matter pending recommendations from the committee examining the issue and views from the relevant ministries.
