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Pakistan Auto Policy Sets Higher Car Export Targets
Pakistan's proposed Auto Policy outlines ambitious targets for car and auto parts exports, increasing from 4% to 20% by 2031. To support this, the government is implementing tax incentives for electric vehicles and enhancing local manufacturing competitiveness. Key measures include a Duty and Tax Remission for Exporters scheme and reduced customs duties on various vehicles. Consumer protection provisions are also strengthened, ensuring fair practices in pricing and delivery.
MonitorConfidence: HighMid term horizon
Published 10 Sept 2026, 14:31 UTC3 min read
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Brief
NewsBite reading:Pakistan introduces new Auto Policy with ambitious export targets and EV incentives
TL;DR
- Export targets for car manufacturers increased to 20% by 2031.
- Introduction of incentives for electric vehicles, including tax exemptions.
- Duty and Tax Remission for Exporters scheme proposed.
- Customs duties on conventional vehicles to be reduced by up to 80%.
- Stronger consumer protections for pricing and delivery commitments.
Interesting facts
- The policy aims to integrate local car parts manufacturers into global supply chains.
- Financing limits for electric vehicles will be significantly raised.
What changed
The new Auto Policy introduces higher export targets and welfare measures for manufacturers and consumers.