ISLAMABAD: The federal government is planning to introduce Pakistan’s new Auto Policy in the month of August-2026, with a purpose to attract fresh investment, expand local vehicle manufacturing, and promote cleaner transportation, officials said.
In this connection, work has already been started on the move to finalize an investor-friendly policy designed to strengthen the automotive sector and create new employment opportunities, they informed.
The fresh policy will introduce international safety standards for locally manufactured vehicles, bringing Pakistan’s auto industry closer to global benchmarks and improving vehicle quality.
Moreover, to accelerate the transition toward environmentally friendly transport, the government will also announce incentives for electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), and hybrid vehicles.
Under Pakistan’s broader climate strategy, the coming policy may propose a carbon tax on petrol-powered and hybrid vehicles. However, officials say the tax-related measures would be finalized only after consultations with the International Monetary Fund (IMF). This new auto policy would certainly encourage the usage of hybrid and EVs cars in the country.
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