Pakistan’s federal government has introduced a significant set of incentives for electric vehicles (EVs) in the Budget 2026–27, aimed at accelerating the country’s shift toward clean and sustainable transportation.
Under the new policy, fully imported electric vehicles (CBUs) valued up to Rs. 20 million (Rs2 crore) will now be subject to 0 percent customs duty, making them considerably more affordable for consumers in this segment. This marks a major policy shift designed to encourage wider adoption of EVs in the local market.
For higher-priced vehicles, the government has introduced a tiered duty structure. EVs falling within the Rs2–3 crore range will be charged 30 percent customs duty, while luxury electric vehicles valued above Rs3 crore will face a 40 percent duty. Officials say this approach ensures targeted relief for mid-range buyers while maintaining higher taxation on luxury imports.
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In addition to import duty reductions, the government has extended the 1 percent customs duty regime on Completely Knocked Down (CKD) EV parts until June 30, 2027. This extension is intended to support local assembly operations and encourage domestic manufacturing of electric vehicles.
Furthermore, zero-duty incentives have also been introduced for machinery used in EV production, signaling strong policy support for building a local electric mobility ecosystem.
Policy experts believe these measures could significantly reduce EV prices in Pakistan and attract both international manufacturers and local investors. The incentives are also expected to boost green mobility, reduce fuel dependency, and contribute to lower carbon emissions.
Overall, the new framework reflects a clear push by the government to integrate electric vehicles into the mainstream automotive market and accelerate the country’s transition toward environmentally friendly transport solutions.
