PM Shehbaz Approves Five-Year Auto Policy

News Desk 

Islamabad: Prime Minister Shehbaz Sharif has approved a new five-year automobile policy for 2026-31, featuring proposals to gradually reduce import duties on hybrid vehicles, trucks and buses.

However, the policy will require approval from the International Monetary Fund (IMF) and subsequently the federal cabinet before it can be implemented.

According to the draft policy document, duties on imported hybrid vehicles are proposed to be reduced in phases over the five-year period.

The draft proposes a 20 per cent reduction in taxes on the import of hybrid vehicles above 1,800cc. It also recommends reducing the duty on hybrid vehicles above 1,801cc from 50 per cent to 30 per cent.

For hybrid vehicles between 1,501cc and 1,800cc, the proposed duty would also decline from 50 per cent to 30 per cent.

Similarly, the draft proposes cutting the duty on hybrid vehicles ranging from 851cc to 1,000cc, as well as vehicles up to 800cc, from 50 per cent to 30 per cent.

The proposed policy also covers commercial hybrid vehicles. The duty on hybrid trucks is proposed to be reduced from 30 per cent to 15 per cent, while that on hybrid light commercial vehicles would fall from 60 per cent to 30 per cent.

In addition, the duty on hybrid buses is proposed to be reduced from 30 per cent to 15 per cent.

The draft policy aims to introduce a phased reduction in import duties across different categories of hybrid vehicles and commercial transport.

Following the prime minister’s approval, the policy is expected to be submitted to the IMF for review before being placed before the federal cabinet for final approval.