By Urdu Report Editorial Team
Prime Minister Shehbaz Sharif has approved a new five-year auto policy, but the policy will still require approval from the International Monetary Fund (IMF) and the federal cabinet before implementation.
According to the draft policy, the new auto policy is proposed to remain in effect from 2026 to 2031. It includes proposals for a phased reduction in duties on imported hybrid vehicles.
Proposed duty cuts for hybrid vehicles
The draft proposes reducing taxes on the import of hybrid vehicles above 1,800cc by 20 percent over five years.
For hybrid vehicles above 1,801cc, the duty is proposed to be reduced from 50 percent to 30 percent.
A similar reduction is proposed for hybrid vehicles between 1,501cc and 1,800cc, with the duty falling from 50 percent to 30 percent.
The draft also proposes reducing the duty from 50 percent to 30 percent on hybrid vehicles with engine capacities of 851cc to 1,000cc and up to 800cc.
Proposed changes for hybrid commercial vehicles
The policy draft proposes cutting the duty on hybrid trucks from 30 percent to 15 percent.
For hybrid light commercial vehicles, the proposed duty reduction is from 60 percent to 30 percent.
The duty on hybrid buses is also proposed to fall from 30 percent to 15 percent.
Overall, the proposed auto policy includes phased reductions in duties on imported hybrid vehicles.
Following the prime minister’s approval, the policy will first be submitted to the IMF for approval. It will then be presented to the federal cabinet for approval before implementation.
