The Government of Pakistan is preparing a major relief package for the auto sector in the upcoming federal budget 2026–27. The main focus of this plan is to reduce import duties, support the local automobile industry, and encourage the use of new energy vehicles such as hybrid cars and electric vehicles (EVs).
According to early details, the government is considering the removal of additional customs duties on vehicles and auto parts. At the same time, regulatory duties may be reduced step by step to make the policy more balanced and industry-friendly. This change is expected to help lower the overall cost of vehicles in the local market.
The Toyota Corolla: The Best-Selling Car in History
Under the proposed structure, auto parts may face around a 5% duty, while fully assembled vehicles could be taxed at nearly 10%. For Completely Knocked Down (CKD) kits, the expected duty range is between 5% and 10%. These adjustments are aimed at creating a more stable pricing system and supporting both manufacturers and consumers.
Officials say the new policy is also designed to promote environmentally friendly transport in Pakistan. By encouraging hybrid and electric vehicles, the government hopes to reduce fuel consumption, lower pollution, and shift the country toward a cleaner and more sustainable transport system.
Industry experts believe that if these changes are implemented, car prices may become more affordable for the general public. At the same time, the local auto sector could see new investment and increased competition, which may improve quality and innovation.
The upcoming budget is being seen as an important step for Pakistan’s automobile industry. It reflects a broader effort to balance economic growth, environmental concerns, and consumer relief in the transport sector.
