Proton Pakistan Refund Issue Escalates as Rs. 600 Million Remains Unpaid

Proton Pakistan still owes Rs 600 million to buyers following widespread delivery delays, prompting government intervention to protect consumers.

The Malaysian car brand, marketed locally by the Al‑Haj Group, collected roughly Rs 890 million in booking payments. So far, the company has refunded Rs 300 million to customers who did not receive their vehicles, but nearly Rs 600 million remains unpaid.

Customers lodged complaints after waiting long past promised delivery dates without receiving cars or refunds. In response, Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan and the newly appointed chief of the Engineering Development Board (EDB) intervened. They urged the company to either deliver the vehicles or return the full payments.

Sources told Tribune that Proton assured authorities it will repay the remaining balance, but a clear timeline is still pending. Meanwhile, the Ministry of Industries has received similar complaints against other car brands, with customers reporting years of delayed deliveries despite full or partial payments.

Under Pakistan’s auto policy, manufacturers and assemblers must pay interest to buyers if deliveries lag beyond six months. However, industry officials say many cases of delayed delivery stretch far longer without resolution.

The EDB, which regulates the auto sector and oversees consumer protection, has started reviewing pending cases. Government officials say they are also considering strict action against companies that fail to honor delivery commitments or refund customers promptly.

ALSO READ: PSX Drops 2,537 Points Amid Heavy Selling

The government introduced incentives for new automakers under its auto policy to boost competition in a market long dominated by established Japanese brands. However, persistent delivery delays and refund issues have clouded consumer confidence and raised calls for stronger enforcement