The Pakistan government is planning to reduce the sales tax on hybrid electric vehicles (HEVs) from 25% to 18%. This change aims to make these fuel-efficient cars more affordable for buyers and support cleaner transport options. A proposal has been sent to the Finance Division and needs approval from the federal cabinet to take effect. […]

Mega Motor Company (MMC), the official partner of BYD in Pakistan, has received the largest-ever shipment of more than 2,000 New Energy Vehicles (NEVs) at Karachi Port. The vehicles arrived via a Roll-on/Roll-off (RoRo) vessel on or around July 17, 2026. This big delivery will help meet growing customer demand for electric and hybrid cars […]

Pakistan’s auto industry has received huge subsidies, but it is still struggling to sell cars outside the country. Experts say more than Rs. 250 billion in subsidies have been given over the years, yet passenger car exports are almost zero. Trade expert Dr. Manzoor Ahmad pointed out that the country has focused on protecting local […]

Hybrid cars in Pakistan are becoming more expensive following the Budget 2026-27. The government did not extend key tax breaks that expired on June 30, 2026. This has raised the total indirect tax burden on many hybrid vehicles to around 25%. Under the previous policy, imported and some locally assembled hybrids enjoyed reduced sales tax […]

Pakistan is moving fast toward cleaner roads. The government plans to have 2.2 million electric vehicles (EVs) on its roads by 2030. This goal was shared in a briefing to the Senate Standing Committee on Industries and Production. This target is part of the New Energy Vehicle (NEV) Policy 2025–30. The policy wants 30% of […]

Pakistan’s upcoming Auto Policy 2026–31 is facing delays after disagreements emerged over tax incentives for electric and other new energy vehicles. The uncertainty comes as discussions continue between the government, IMF, and relevant ministries. According to reports, the government proposed a reduced sales tax structure to encourage the adoption of environmentally friendly vehicles. Under the […]

Pakistan’s automobile market could see major changes as the federal government reviews a proposal to significantly reduce import tariffs on vehicles and auto parts under the National Tariff Policy (NTP). According to reports, authorities are considering cutting customs duties on cars, jeeps, and automotive components by 25% to 50%. If approved, the move could lower […]

Motorists in Islamabad could face higher expenses under the proposed Budget 2026–27, as the government is considering significant revisions to the vehicle token tax structure. According to reports, the proposed changes would increase annual token taxes for several categories of vehicles. Owners of cars with engine capacities up to 1000cc may be required to pay […]