The federal government has extended the import exemption on Completely Knocked Down kits for electric vehicles by one year to June 30, 2027, under Budget 2026-27.
The extension was announced on June 12, 2026, as a wave of existing tax concessions for local EV assemblers was set to expire at the end of the current month.
The exemption applies to small cars and SUVs fitted with battery capacities of up to 50 kWh, providing continued protection for the most widely assembled electric vehicle categories in Pakistan.
Light commercial vehicles with battery capacities of up to 150 kWh are also covered under the extended exemption, supporting a broader segment of Pakistan’s local electric vehicle assembly industry.
CKD kits are imported in parts and assembled domestically, allowing local manufacturers to produce electric vehicles at significantly lower costs than importing fully built units from abroad.
The extension is expected to prevent a sharp increase in production costs that local EV assemblers would have faced had the exemption been allowed to expire on June 30, 2026.
The measure forms part of the government’s broader policy to support the growth of Pakistan’s electric vehicle industry and encourage a gradual transition away from conventional fuel-based transportation.
