Pakistan Auto Policy 2026-31 Still Not Final: Draft Goes to IMF Again

Pakistan's new five-year auto policy is still not final. At a Senate Standing Committee on Industries and Production meeting on 3 November 2026, Ministry of Industries and Production officials said the draft will go to the Finance Ministry and then to the IMF for another review before it can be approved. Until that happens, none of the proposed duty or tax cuts apply to the cars and bikes you buy today.

What happened at the Senate committee

The committee, chaired by Senator Saleem Mandviwalla, was briefed on the draft auto and auto parts manufacturing policy and on electric vehicle (EV) progress. Here are the main points from the briefing, as reported by Bloom Pakistan and PakWheels:

• The draft has been revised several times. It covers vehicle tariffs, taxes, localisation, exports and incentives for new energy vehicles (NEVs).
• The next step is for the Industries Ministry to send it to the Finance Ministry. The Finance Ministry will then share it with the IMF.
• Committee members were unhappy with how long approval is taking.
• Members also flagged a shortage of trained technicians and of public charging points.

This adds to an earlier timeline. In October, 24 News reported that Prime Minister Shehbaz Sharif had approved the draft of the 2026–31 policy. The latest briefing shows the draft still has to clear the IMF and get final government approval.

Electric two- and three-wheelers are growing fast

The Engineering Development Board (EDB) figures shared with the committee show strong growth in locally made electric bikes, scooters and rickshaws:

More than 85 companies now hold licences to make or assemble electric two- and three-wheelers. Their combined capacity is over 290,000 units a year.

Charging stations: the weak link

The government aims to set up 3,000 EV charging stations across the country at a discounted tariff of Rs 40 per unit. EDB officials said 40 motorway sites from Peshawar to Karachi have been identified, and 18 installations are underway.

The EDB could not say how many public chargers are working right now. One senator pointed out that only one station, at Bhera on the Islamabad–Lahore Motorway, was confirmed as operational.

What the draft policy proposes (not yet in force)

These items have been reported as proposals. Treat them as possible future changes only:

• Gradually lower import duties on vehicles and parts.
• Lower sales tax for battery EVs (BEVs), plug-in hybrids (PHEVs) and range-extended EVs (REEVs). In October, 24 News reported proposed rates of 1% for BEVs, 6% for REEVs and 9% for PHEVs.
• A higher EV financing limit. 24 News reported a proposed rise from Rs 3 million to Rs 10 million, with repayment periods extended from three to five years.
• A new Automotive Development Levy on vehicles above 1,000cc.

Current EV bike duties stay in place until 30 June 2027, according to the briefing. These include 1% customs duty on key parts such as batteries and motors, and 1% sales tax on locally assembled electric two- and three-wheelers.

What it means for buyers in Quetta and across Pakistan

• Don't wait on rumours. Prices of locally assembled and imported cars won't change because of this policy until it's approved and notified. If you need a car now, compare today's new car prices and used cars as they are.
• Electric bikes are the easiest EV to own. With output rising sharply, more models and spare parts are reaching the market. Home charging is enough for city riding in Quetta, so you don't need public chargers. Browse used bikes to compare with petrol options.
• Long-distance EV trips are still hard. The planned motorway chargers are mostly on the Peshawar–Karachi corridor. Routes such as Quetta–Karachi (N-25) and Quetta–Sukkur have no confirmed public charging network yet.
• Selling soon? Talk of cheaper imports can unsettle the used-car market. It makes sense to list your car for free and get a car inspection in Quetta so buyers can trust your asking price.

Frequently asked questions

Has Pakistan's new auto policy 2026–31 been approved? Not finally. On 3 November 2026, officials told the Senate committee that the draft will go to the Finance Ministry and then the IMF for review before final approval.

Will car prices drop because of the new auto policy? Not yet. Proposed duty and tax cuts only take effect after the policy is approved and officially notified, so current prices still apply.

How many electric bikes and rickshaws did Pakistan make in 2025–26? According to Engineering Development Board data, 210,268 electric two- and three-wheelers were produced in FY2025–26, up from 59,756 the year before.

How many EV charging stations are planned in Pakistan? The government targets 3,000 stations at a discounted Rs 40 per unit. 40 motorway sites have been identified, and 18 installations are underway.

Sources: Bloom Pakistan (4 Nov 2026); PakWheels (4 Nov 2026); 24 News HD (20 Oct 2026); Express Tribune (Apr 2026).

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