The federal government is considering giving relief to Pakistan’s auto sector in the upcoming 2026–27 budget, according to reports on Tuesday. This relief could lead to lower prices for petrol, electric, and hybrid vehicles.
Bike, car prices, Budget 2026 27
Under the proposal, additional customs duties may be removed. Additionally, the regulatory duties could be reduced gradually as part of the National Tariff Policy.
Electric vehicles and other new-energy vehicles are also likely to be included. Hybrid vehicle parts may face a 5 per cent customs duty. Sales tax on hybrid vehicles could be reduced to 9 per cent, according to the reports.
The government is considering a 5 per cent duty for auto parts. Additionally, 10 per cent on assembled vehicles, and 5 to 10 per cent on CKD kits.
There may also be exemptions for electric bikes, rickshaws, and some vehicles under specific duty conditions, the reports say.
Locally assembled electric vehicles are expected to get more protection in comparison to fully imported ones.
The proposals also suggest keeping the average tariff on locally manufactured cars below 6 per cent. In addition to this, duties on imported petrol vehicles will be slowly reduced.
Some reports suggest that the government is expecting to slowly bring auto sector incentives into a regular system.
The federal budget for 2026–27 is expected in early June 2026 and will take effect from July 2026.
NADRA issues guidelines as fees may rise after budget
The National Database and Registration Authority (NADRA) has issued an advisory asking citizens to complete important documentation before June 30, 2026. NADRA has warned that fees and penalties may increase after the 2026–27 federal budget.
NADRA has advised people with expired Computerised National Identity Cards (CNICs) to renew them before the deadline to avoid extra charges.
The authority said it is reviewing its fee structure, and those who miss the deadline may face higher fees or fines.
