Pakistan NEV Industry Seeks Auto Policy 2026-31

Pakistan’s new energy vehicle sector has asked Prime Minister Shehbaz Sharif to move fast on Auto Policy 2026-31, saying the delay is already hurting investment, production planning and buyer confidence. reportedly the policy is still waiting on the next steps in the approval chain, including Finance Ministry processing and a possible IMF review, while required SROs have also not been issued yet.

The industry says this delay has already cost the sector four months. It claims the uncertainty has slowed down CKD shipments, disturbed production schedules, raised demurrage costs and cooled consumer demand. reportedly the sector warns that if the situation continues, billions of rupees in investment and thousands of jobs could be at risk.

What the draft policy proposes

The current draft is still a proposal, not law. The rates below are not current taxes and may still change before any notification.

Reportedly, the Ministry of Industries and Production told the Senate Standing Committee on Industries and Production that the draft would go to the Finance Ministry first, and then be sent to the IMF for review. That means the policy still has to pass several stages before it can become active.

Why the delay matters for buyers

For Pakistani car buyers, the biggest issue is uncertainty. Some shoppers may wait because a lower tax structure could make EVs and other new energy vehicles more affordable. But the final price will still depend on many things, including the rupee’s movement, dealer pricing, registration fees and supply costs.

That is why buyers should be careful about booking a vehicle too early. If someone needs transport right away, the safer choice is to judge the current confirmed price, warranty support and delivery time under existing rules. Buyers who can wait should avoid making a non-refundable booking until the official notification and SROs are out.

For context on how policy delays can affect market sentiment, readers can also see Pakistan Auto Policy 2026-31 Delayed: Record Car Financing Shows Demand and Pakistan Auto Policy 2026-31 on Hold: Hybrid Tax Shock.

Risk for makers and investors

The industry’s main concern is not just tax rates. It is the lack of a clear timeline. Manufacturers need stable duties and taxes before they commit to local assembly, tooling, supplier contracts and worker hiring. Without that clarity, CKD shipment planning and localisation targets become harder to manage.

Reportedly, the sector also argues that faster NEV adoption could help cut Pakistan’s petroleum import bill, which it estimates at around $16 billion a year. That figure comes from the industry’s own position, not from an independently verified government forecast.

What happens next

The expected path is still the same: policy finalisation, Finance Ministry processing, possible IMF review, notification and then SRO issuance. The key risk right now is further delay, not a confirmed tax hike or tax cut.

Until the official notification is issued, final rates, eligibility rules, tariff periods and levy structure should all be treated as unconfirmed. Readers planning to buy, import or invest should check government notifications before making a decision.

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