Electric Car Buyers to Get 5-Year Rs. 1 Crore Loans

Pakistan is planning major tax incentives and financing backing for electric and new energy vehicle buyers under its draft Automotive and Auto Parts Manufacturing Policy 2026-31.

Key points

• The draft Automotive and Auto Parts Manufacturing Policy is still under consideration and has gone through a number of administration committees since June.
• The administration additionally intends to reduce customs duty on completely built battery electric vehicles (BEVs) priced up to $15, 000.
• To backing the transition from internal combustion engine (ICE) vehicles, the draft policy proposes an Auto Development Levy on ICE vehicles.
• Obtain the latest business news, market insights, and economic updates wherever you prefer.
• The policy additionally seeks to growth local manufacturing and value addition of electric vehicles and their components.

For context, the policy proposes financing of up to Rs. 10 million for new energy vehicles (NEVs) for a period of five years, along with measures to expand charging infrastructure and battery-swapping and battery-as-a-service facilities. Electric Cars Can Save Pakistan $1 Billion.

While qualifying vehicles would be exempt from Federal Excise Duty (FED), Capital Value Tax (CVT) and Withholding Tax (WHT), subject to a $75, 000 cost threshold, locally produced NEVs would receive preferential GST rates.

For context, the administration additionally intends to reduce customs duty on completely built battery electric vehicles (BEVs) priced up to $15, 000. The proposed 5 percent customs duty would apply during FY2026-27 and FY2027-28.

To backing the transition from internal combustion engine (ICE) vehicles, the draft policy proposes an Auto Development Levy on ICE vehicles. The levy would support finance the shift toward NEVs, research and development, and vendor development.

In practice, the policy additionally seeks to growth local manufacturing and value addition of electric vehicles and their components.

Notably, the draft Automotive and Auto Parts Manufacturing Policy is still under consideration and has gone through a number of administration committees since June. Stay Connected with ProPakistani.

Obtain the latest business news, market insights, and economic updates wherever you prefer. Follow on Google Discover. Follow on Google News Join WhatsApp. See more ProPakistani stories in Google Search and Top Stories.

Taken together, the developments around electric Car Buyers to Get 5 point to a situation that is still moving, and the coming days should bring more clarity.