New auto policy: non-luxury cars to get cheaper, PM aide says

Adviser Haroon Akhtar said the policy gives a 5% export reward in year one and sets EV sales tax at 1%, while IMF approval is still pending.

Haroon Akhtar, the PM's adviser on industry and production, said all vehicles except luxury cars will become cheaper under the new auto policy.

The policy gives exporters a reward of 5% of export value in the first year and sets a 6 billion export target over five years.

Sales tax on electric vehicles is 1%, rising to 6% for range-extended models and 9% for plug-in hybrids.

The policy still needs IMF approval, and the cabinet approved an LPG auction framework on 4 November 2026.

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