Prime Minister (PM) Shehbaz Sharif has approved the draft of the new auto policy for 2026-31. The policy will soon be presented to the federal cabinet for final approval.
According to sources, officials from the Ministry of Law briefed the prime minister on the draft policy. After the briefing, he directed officials to present it to the federal cabinet.
The new auto policy proposes keeping the prices of locally made and imported hybrid cars balanced.
The policy also proposes making a certificate of validity mandatory for imported vehicles.
Sources said the policy will move towards implementation after the federal cabinet gives its final approval.
New auto policy 2026–31
Previously, PM Shehbaz approved the draft of the new auto policy 2026–31. The policy was set to be shared with the International Monetary Fund (IMF) before being sent to the Economic Coordination Committee (ECC) for review.
After the required approvals, the policy was expected to be presented to parliament. PM Shehbaz Sharif chaired a meeting to review the draft policy.
What does the new auto policy propose?
The new auto policy aims to attract investment in Pakistan’s local auto industry. It also seeks to increase vehicle exports, support local production and promote modern technology.
The draft proposes reducing taxes on imported hybrid vehicles by 20 per cent over the next five years.
It also suggests lowering duties on hybrid vehicles with engine capacities of 851cc to 1,000cc and up to 800cc from 50 per cent to 30 per cent over five years.
The draft further proposes a gradual reduction in taxes on imported hybrid vehicles with engine capacities above 1,800cc.
Under the proposal, duties on hybrid vehicles above 1,801cc could be reduced from 50 per cent to 30 per cent over five years.
A similar reduction is under consideration for hybrid vehicles with engine capacities between 1,501cc and 1,800cc.
The draft also includes a proposal to reduce duties on imported hybrid trucks from 30 per cent to 15 per cent.
