ISLAMABAD – Pakistan’s new Auto Policy 2026-31 is awaiting approval, with Prime Minister Shehbaz Sharif scheduled to chair another meeting on the proposed policy tomorrow, according to reports.
Reports said the International Monetary Fund (IMF) would also be consulted before the new auto policy is formally announced. Implementation will begin after the policy receives approval from the Economic Coordination Committee (ECC) and the federal cabinet.
The proposed policy aims to attract investment in the domestic automobile industry and promote vehicle exports, according to sources.
To meet financial requirements, the government is considering imposing an environmental levy on large-engine vehicles. The revenue generated through the levy would be allocated to promoting exports and supporting research and development in the automotive sector.
Reports said a 10% environmental levy has been proposed on vehicles with engine capacities ranging from 2,001cc to 3,000cc.
For vehicles with engine capacities of 3,001cc and above, a 19.5% environmental levy has been proposed.
According to estimates, the proposed environmental levy could generate approximately Rs142.79 billion in revenue over a five-year period.
The government is expected to finalise the details of the Auto Policy 2026-31 after consultations with relevant stakeholders and approval from the concerned forums.
