The federal government announced toll exemptions for New Energy Vehicles on motorways and national highways, forming a central feature of Auto Policy 2026–31.
Officials confirmed the policy includes restructuring of the auto regime, with Additional Customs Duties phased out by FY2029 and Regulatory Duties reduced 80 percent by FY2030.
All SRO-based concessions shaping tariff protection will be abolished by FY2030, marking a significant departure from long-standing practices in the automotive sector.
According to the media reports, import tariffs on Completely Built Unit vehicles will decline from 50–100 percent to 35–75 percent over five years under the new framework.
For Completely Knocked Down units used in local assembly, tariffs will reduce from 30 percent to 20 percent within the same period.
The reforms aim to lower the weighted average applied tariff to below six percent by FY2030, ensuring broader affordability and market competitiveness.
NEV incentives will be linked to localization requirements, ensuring benefits for electric vehicles align with domestic manufacturing and support Pakistan’s clean energy transition.
