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Pakistan Likely to Cut Prices of Locally Assembled Cars and EVs in Budget 2026-27
The government is expected to reduce taxes and duties on locally assembled vehicles and electric vehicles in the upcoming Budget 2026-27, aiming to make cars more affordable.
ND
by News Desk
2026-05-06
Pakistan Likely to Cut Prices of Locally Assembled Cars and EVs in Budget 2026-27

Pakistan is likely to introduce significant relief measures for the auto sector in the upcoming Budget 2026-27, with proposals under consideration to reduce taxes on locally assembled cars and electric vehicles (EVs).

According to reports, the government is planning a broad-based reduction in duties and taxes on the automotive industry, particularly focusing on locally manufactured vehicles to support domestic production and make transport more affordable for consumers.

The proposed measures may include cuts in customs duties, regulatory duties, and other taxes on Completely Knocked Down (CKD) units as well as incentives for electric and hybrid vehicles. Officials are also considering expanding tax exemptions and duty reductions for EVs to encourage the shift toward cleaner and more energy-efficient transportation.

Industry sources suggest that the policy aims to stimulate local manufacturing, attract investment in the EV sector, and reduce dependency on imported fuel amid rising global energy prices. The reforms are also expected to help stabilize car prices, which have remained high due to inflation and import restrictions.

If approved, the budget could mark a major shift in Pakistan’s auto policy, making both traditional and electric vehicles more accessible to the general public while supporting the country’s long-term green mobility goals.
Tagged:

#Budget202627 #PakistanEconomy #ElectricVehicles #CarPrices #AutoIndustry #EVPakistan #TaxCuts #BusinessNews #PakistanNews
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