The government of Pakistan has proposed significant reductions in import duties on completely built-up vehicles across all five engine size categories by the year 2030.
The proposed cuts will affect every engine category, from the smallest vehicles at 850cc and below to the largest vehicles at 1801cc and above.
| Engine Category | Current Duty | Proposed Duty 2030 | Change |
|---|---|---|---|
| 850cc and below | 56% | 35% | ↓ 21% |
| 851cc – 1000cc | 71% | 40% | ↓ 31% |
| 1001cc – 1500cc | 76% | 45% | ↓ 31% |
| 1501cc – 1800cc | 91% | 77% | ↓ 14% |
| 1801cc and above | 156% | 115% | ↓ 41% |
The reductions form part of a structured tariff reform plan that will bring down import duties on fully built vehicles across the entire automotive sector.
Small and mid-size vehicle categories
Vehicles with engines of 850cc and below will see import duty reduced from the current 56 percent down to 35 percent, a cut of 21 percentage points.
The 851cc to 1000cc engine category will experience the steepest proportional reduction, with duties falling sharply from 71 percent currently to just 40 percent by 2030.
Vehicles in the 1001cc to 1500cc category will have their import duty reduced from the current 76 percent to 45 percent, a reduction of 31 percentage points.
Larger engine categories
The 1501cc to 1800cc engine category will see a comparatively smaller reduction, with duties dropping from the current 91 percent to 77 percent by 2030.
Vehicles with engines of 1801cc and above currently carry the highest duty rate of 156 percent, which is proposed to fall to 115 percent by 2030.
The largest engine category will see an absolute reduction of 41 percentage points, representing the biggest single numerical cut across all five proposed vehicle categories.
Overview of proposed changes
Across all five categories, the proposed duty reductions range from a minimum cut of 14 percentage points to a maximum cut of 41 percentage points.
The smallest engine category of 850cc and below will move from 56 percent to 35 percent, while the largest moves from 156 percent to 115 percent respectively.
Every engine category under the proposed structure will carry a lower duty rate by 2030 than any category currently carries under the existing tariff framework.
