New Auto Policy Pakistan 2022 – 2026 | All You Need To Know

According to the Auto Policy 2021-2026, the import obligation on electric vehicles will be decreased from 25% to 10% for one year. On Wednesday, the government announced a new policy for the development of the automotive and export industry (AIDEP 2021-26), which would reduce the sales tax on domestic electric vehicles (EV) by 17% to 1%.

Purpose of New Auto Policy Pakistan 2022 to 2026

The purpose of the policy is to promote small cars, localization, the introduction of new products in tractors and motorcycles, consumer protection and promotion of new technologies, such as electric cars and hybrids, in export markets.

In the project published by the Engineering Development Council at the Ministry of Industry and New Technology, it is stated that the personal tariff for certain segments of electric vehicles is set at 1%. Before this govt has launched the meri gari scheme.

Under this policy, total imports of electric vehicles (CBU) will be reduced from 10% to 25%. In some parts of electric vehicles, tricycles and heavy commercial vehicles, however, the effect is limited to 1 percent. The car policy also allowed the production of hybrids, as the sales tax was reduced by 8.5%.

Under the plan, tariffs for individual spare parts for hybrid and hybrid vehicles will be linked at 4% and 3% respectively. The Council also decided to reduce the CBU import tariff for hybrids (higher than 15 ٪ 1,800 cc, 0 to 1,800 cc and lower).

Also, the policy proposal states that the import of vehicles will not be allowed if they do not meet the safety requirements. The document states: “After June 30, 2022, no vehicle that does not comply with WP 29 rules has been produced/imported in the domestic market.”


  • The import tariff for electric vehicles is reduced from 10% to 25%.
  • If the car manufacturer delays the car for more than 60 days (2 months), the company pays 3% KIBOR.
  • Check if there is a tax exemption for imported vehicles each year.
  • By 2026, carmakers will set a 10% export target.
  • One percent will be paid for motorcycle parts.
  • The tariff on imports of CBU electric vehicles has been reduced from 25 to 10 percent.
  • Tax benefits on exports of vehicles and spare parts.
  • The sales tax for hybrid cars should be reduced by 8.5%.
  • Regulatory obligations for the import of CBU hybrids will be reduced.
  • At 1800 cc, the fee is reduced by 15% in hybrid testing.
  • Restrictions on nationally manufactured / imported vehicles after June 30, 2022 that do not comply with WP Rule 29.
  • The tax on spare parts for electric vehicles is 1%.

Already the PTI government aims to introduce a new car policy for the next 5 years in order to increase car production in the domestic market and increase competition. The government has already announced tax cuts for 2022-2026 due to lower car prices. Now the government intends to launch a comprehensive automated policy.

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