July 16, 2026
Pakistan Auto Policy 2026–31 Delayed as IMF Rejects 1% Sales Tax on Electric Vehicles; Old Policy Extended
Pakistan's new Auto Industry Development and Export Policy 2026–31 has been delayed after the IMF rejected the government's proposed 1% sales tax on new energy vehicles, insisting on the standard 18% GST across the board. The existing AIDEP 2021–26, which expired in June, will be extended for another year while negotiations continue. The disagreement centres on whether electric and hybrid vehicles should receive preferential tax treatment, which the IMF views as inconsistent with its fiscal reform agenda.



