ISLAMABAD – A brewing institutional power struggle is threatening to disrupt Pakistan’s automotive regulatory framework, as the proposed Motor Vehicles Industry Development Act, 2025 seeks to hand over control of vehicle safety and quality standards to the Engineering Development Board (EDB) — sidelining the Pakistan Standards and Quality Control Authority (PSQCA), the country’s legally designated national standards body.
For decades, PSQCA, operating under the Ministry of Science and Technology, has held the exclusive mandate to develop, notify, and enforce technical standards for all products, including motor vehicles. It is also internationally recognized as Pakistan’s sole standards body under the WTO Technical Barriers to Trade (TBT) Agreement and the ISO framework.
The draft Act, however, controversially empowers the EDB, a policy-focused entity under the Ministry of Industries and Production, to set and enforce minimum safety, performance, and environmental standards for vehicles. Regulatory insiders and legal experts warn that this move not only undermines PSQCA’s statutory authority but also risks creating a regulatory void, jeopardizing consumer safety and market integrity.
Conflict of interest fears
Critics argue that the EDB lacks both the technical expertise and infrastructure to perform safety conformity assessments. Its historical role has been to support industrial policy, not enforce regulations or protect consumers. Moreover, the Board’s close ties with local automakers—often criticized for high prices and substandard safety features—raise concerns about conflict of interest.
“Giving EDB control over standards would essentially let the industry regulate itself,” said an official in the Ministry of Science and Technology. “This is not just legally flawed but dangerous for consumers.”
Industry watchers suggest the powerful automobile lobby prefers dealing with the EDB due to its softer stance, compared to PSQCA’s push to align vehicle safety benchmarks with international standards. PSQCA has recently adopted Type Approval procedures and signed recognition agreements with global standardization bodies, signaling its intent to raise domestic safety and performance requirements to international levels.
Legal and institutional risks
Legal experts warn that assigning overlapping powers to the EDB could lead to regulatory confusion, weaken independent oversight, and invite legal challenges. It could also violate Pakistan’s international commitments, as WTO rules discourage multiple entities in one country from duplicating standard-setting roles.
The Ministry of Science and Technology has confirmed it will formally oppose the controversial clauses in the draft law, arguing that bypassing PSQCA’s authority would be both unlawful and counterproductive.
“The mandate for vehicle standardization is crystal clear under existing law,” said a senior ministry official. “Creating parallel structures will only dilute accountability and weaken compliance with international norms.”
Wider implications for governance
If passed in its current form, the Act could unintentionally narrow EDB’s broad mandate—meant for all engineering sectors—into a narrow automotive focus, undermining its original purpose. More importantly, critics say the law could erode public safety safeguards and allow vehicles, whether imported or locally assembled, to enter the market without proper independent scrutiny.
While the government frames the Motor Vehicles Industry Development Act, 2025 as a step toward modernization, opponents argue it risks achieving the opposite—fragmenting responsibilities and giving manufacturers greater leverage over regulatory oversight.
As the bill heads for parliamentary debate, the tug-of-war between the two institutions is expected to intensify, with long-term consequences for automotive safety, consumer protection, and Pakistan’s compliance with global trade commitments.
