Islamabad (HRNW)- The final round of negotiations between Pakistan and the International Monetary Fund (IMF) on the federal budget for fiscal year 2026-27 is underway in Islamabad, with sources indicating that an agreement on key budget targets may be reached soon.
According to sources, the draft of the new five-year auto policy (2026–2031) has also been shared with the IMF, with special emphasis on the promotion of electric vehicles (EVs).
Reports suggest that the IMF has proposed imposing an 18 percent GST on electric vehicles, while the Pakistani government has recommended a significantly lower tax rate of just 1 percent to encourage the adoption of new energy vehicles.
Sources further stated that reduced tax proposals are also under consideration for four-wheelers, three-wheelers, motorcycles, buses, trucks, pickups, double cabins, and tractors.
Under the proposed policy, the government plans to gradually reduce tariffs in the auto sector to 6 percent by 2030, while focusing on boosting local manufacturing, exports, and employment opportunities.
The policy also includes plans to modernize Pakistan’s automobile and auto parts industry and transform the sector into a technology-driven and export-oriented industry.
According to officials, the new auto policy aims to address shortcomings of previous policies and introduce new laws with the long-term goal of making Pakistan a global automobile manufacturing hub by 2031.
Support our work and humanitarian efforts here: www.hrnww.com/?page_id=1083
