Pakistan, Nov. 8 -- The federal government on Saturday unveiled a new automobile policy promising cheaper vehicles, greater localisation and a faster transition to electric mobility. Adviser to the Prime Minister Haroon Akhtar Khan outlined a five-year reduction in import tariffs, export incentives tied to local manufacturing and preferential taxation for electric vehicles. Prime Minister Shehbaz Sharif's insistence on making cars affordable deserves appreciation. No two ways about it. After decades of protection, however, Pakistan's automobile industry must answer a rather awkward question. Why has an industry sheltered from foreign competition for so long struggled to produce cars that ordinary Pakistanis can afford?

The new policy see...