Auto policy benefits 6.6% of households

Pakistan’s Auto Policy 2026-31 is expected to benefit a limited share of households, according to an analysis presented by FPCCI research head Bilawal Suhag at a media workshop, The Express Tribune reported. The figures cited put car ownership at 6.6% of households, compared with 57% owning motorcycles and 41% having no vehicle. Suhag said the policy offers less to the larger groups that rely on motorcycles or public transport.

The plan would gradually reduce import tariffs on fully built vehicles and kits to 15% by 2030-31, while removing regulatory and additional customs duties by FY31. It also proposes lower sales tax rates for electric vehicles, a higher EV financing ceiling of Rs10 million, booking advances capped at 20%, and 45 vehicle safety standards. A new levy on vehicles above 1,000cc is projected to collect Rs232 billion over five years, mainly to support export incentives, as the government targets auto exports of $6 billion, up from $0.2 billion.

The policy was unveiled on November 7, but still requires cabinet approval and formal notification; Suhag cautioned that final figures could change. Its tariff, tax and levy provisions therefore remain proposals, rather than confirmed measures.