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Government Proposes Levy on Local and Imported Vehicles Over 1000cc

October 21, 2026 • 1 hour ago •

ISLAMABAD: The Pakistani government has proposed the imposition of an Automotive Development Levy on local and imported vehicles exceeding 1000cc. This decision comes as part of a broader strategy to reform the automotive sector and align it with international standards.

Sources indicate that the government is currently consulting with the International Monetary Fund (IMF) regarding the new automotive policy. The initial draft of this policy has been approved, signaling a significant shift in how the automotive industry will be regulated moving forward.

This levy is expected to impact consumers significantly, potentially raising the prices of vehicles and affecting purchasing decisions. Analysts suggest that while the move aims to boost local manufacturing, it may also deter buyers who are already facing economic challenges.

In the coming weeks, further discussions with the IMF are anticipated, which will shape the final structure of the automotive policy. Stakeholders in the automotive sector are urged to prepare for the changes that will follow this proposed levy.