Pakistan’s New Auto Policy 2026–2031
What It Means for Car Buyers and the Market
BK
bikecar.pk Editorial
10 Sept 2026• 3 min read
KEY TAKEAWAYS AT A GLANCE
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Pakistan’s New Auto Policy 2026–2031: What It Means for Car Buyers and the Market
The official approval of the Automobile Policy 2026–2031 marks a massive turning point for Pakistan’s automotive sector. Designed to reshape how cars are taxed, built, and driven across the country, this five-year framework introduces major incentives for electric vehicles while charting a clear path down for traditional vehicle tariffs.
Here is everything you need to know about the new policy, broken down clearly for car enthusiasts, buyers, and industry followers.
1. Massive Tax Relief for New Energy Vehicles (NEVs)
In a clear push toward sustainable transport, the government has rolled out aggressive tax concessions for electric and eco-friendly vehicles.
- Minimal Sales Tax: NEVs, along with their completely knocked down (CKD) kits and raw components, will enjoy a remarkably low 1% sales tax rate.