ISLAMABAD: The Competition Commission of Pakistan (CCP) has strongly proposed consumer protection clauses in the auto policy for legally prohibiting the “On Money” practices. According to the CCP’s study, Pakistan’s automobile industry has faced consumer welfare issues such as frequent and arbitrary price increases, delayed vehicle deliveries, and the prevalence of “On Money” premiums. There is no clear legal or institutional mechanism to monitor or regulate these practices. The future policy frameworks should formally institutionalise price monitoring and consumer protection mechanisms. This can be happen by incorporating consumer protection clauses into the auto policy and relevant legal instruments, requiring manufacturers to commit to timely deliveries and post-booking price stability, with penalties for non-compliance; also legally prohibiting the “On Money” practices. Embedding these safeguards in upcoming policies and legal frameworks will restore market fairness, enhance consumer confidence, and create a transparent, accountable system that discourages exploitative practices in Pakistan’s automobile industry. It said operationalising the enablers of AIDEP and the NEV Policy, such as testing labs, R&D tax credits, and vendor financing mechanisms are crucial to achieve measurable localisation and export outcomes. The EV transition must be phased strategically, starting with two- and three-wheelers, while investing in grid modernization, battery recycling, and certification standards before mass EV deployment. Targeted foreign investment and joint ventures can be leveraged through special economic zones (SEZs) and automotive parks to attract Tier-1 suppliers and promote technology transfer. Fiscal neutrality can be achieved by linking tariff reductions to higher production volumes, ensuring that revenue stability aligns with industrial expansion, CCP added. The government must address the demand side of the equation. With high inflation, limited credit penetration, and elevated interest rates, car ownership is beyond the reach of most middle-income households. Expanding access to affordable auto financing will stabilize domestic demand, strengthen economies of scale, and improve industry viability. Finally, effective governance and enforcement will determine the success of all reforms. Price regulation, delivery timelines, and consumer protection must be institutionalised through legal mechanisms, ensuring transparency and accountability in market conduct. Similarly, curbing the misuse of used-car import schemes and enforcing strict quality and emission compliance will protect both consumers and local manufacturers, CCP added. Copyright Business Recorder, 2026