The federal cabinet on Wednesday approved Pakistan’s first comprehensive law for the motor vehicle industry, which mandates minimum safety standards for all vehicles manufactured or imported into the country.

Titled the “Motor Vehicle Industry Development Act”, the law proposed imprisonment of up to three years and a fine of up to Rs10 million on violation of safety and technical rules, according to a report in a local English newspaper.

The law aims to enforce safety, quality, efficiency and environmental standards in vehicles. Under this law, no vehicle can be sold unless it is registered under the new law and a “Certificate of Conformity” has been obtained for it.

If a car manufacturer or importer fails to comply with these standards, they can be sentenced to one year in prison or a minimum fine of Rs500,000.

If a certificate is not issued, they can be sentenced to six months in prison, while failure to recall defective vehicles will result in two years in prison or a minimum fine of Rs5 million.

If a vehicle recall order issued by the Engineering Development Board (EDB)is ignored, a penalty of three years in prison or a fine of Rs10 million can be imposed.

The bill is now being forwarded to parliamentary committees for further review and will then be presented to Parliament for approval.

According to the law, only licensed companies, whose primary business is the import of vehicles and who have the required capital, will be able to import vehicles that need repairs.

However, vehicles brought under baggage and gift schemes will be exempt from this law.

All vehicles will be required to display technical details such as size, weight, number of seats and mode of use. For electric vehicles, it will also be mandatory to disclose battery type, performance, recycling and charging standards.

If a vehicle or part is found to be hazardous, the company must recall it, even if it had previously been approved. Otherwise, the EDB will initiate the recall process.