Haroon Akhtar, Advisor to the Prime Minister, stated that the new auto policy will lead to a reduction in vehicle prices. The financing limit for electric vehicles has been increased from 2 million (20 lakh) to 10 million (1 crore) rupees, and no additional tax will be imposed on vehicles with an engine capacity of less than 1,000 cc.
Speaking at a press conference in Islamabad alongside Information Minister Attaullah Tarar, Haroon Akhtar emphasized that the development of industries is among the government’s top priorities. He noted that the export-oriented policy was formulated following extensive consultation and hard work. A key component of this policy concerns the automotive sector, which is expected to drive down vehicle prices—with a gradual reduction anticipated for vehicles catering to the middle and upper classes. He stressed that local production of vehicles is essential.
Haroon Akhtar explained that an ‘export reward policy’ has been introduced, whereby rewards will be granted for meeting export targets. Localization in the automotive sector is a priority, aimed at boosting local employment. Furthermore, ensuring vehicle safety standards is a key priority for the Prime Minister, and special focus is being placed on the promotion of electric vehicles (EVs).
He recalled that the Prime Minister launched the electric vehicle policy last year, offering significant incentives. These incentives are expected to increase the number of electric vehicles in the country. The importance of electric vehicles has grown further due to rising petrol prices.
To support this, customs duties on equipment for EV charging stations have been reduced to 1%, while other taxes have been eliminated.
The new auto policy will also lower manufacturing costs, and the government is committed to providing full support to those exporting vehicles.
Information Minister Atta Tarar stated that the Prime Minister is placing special emphasis on providing relief to the lower and middle classes. Electric vehicles will offer convenience to the public while also significantly benefiting the environment.
Reducing the import bill would allow us to redirect those funds toward healthcare and education. The Prime Minister has directed that measures be taken to facilitate the middle class within the automotive sector.
