- Pakistan continues concessional customs duty support for electric and hybrid vehicles under EV Policy 2020 and AIDEP 2021-26 until June 30, 2027.
- EV ecosystem components such as charging stations and CKD parts receive significant duty reductions to accelerate local manufacturing and adoption.
Pakistan EV Import Duty Framework Update Under Policy 2027
Pakistan has retained its concessional customs duty framework for electric and hybrid vehicles under the EV Policy 2020 and Auto Industry Development and Export Policy (AIDEP) 2021-26, both extended in applicability until June 30, 2027. The updated Fifth Schedule to the Customs Act reinforces a structured approach aimed at encouraging imports of electric vehicles while simultaneously supporting local assembly and manufacturing capacity building within the country’s automotive sector.
Duty Structure for Electric Vehicles and Components
Under the revised structure, electric buses and trucks benefit from nil customs duty on completely built unit imports, significantly lowering entry barriers for commercial EV adoption. Electric four-wheelers valued up to USD 50,000 are subject to a 25% duty, while manufacturers importing up to 100 units of the same variant for local assembly can access a 50% duty reduction. Additionally, CKD-specific EV components such as batteries, motors, controllers, and chargers are uniformly taxed at 1%, while non-localized CKD parts attract a 15% duty rate.
Incentives for Manufacturing Infrastructure and Hybrid Vehicles
To further strengthen domestic EV manufacturing capabilities, Pakistan has exempted plant and machinery required for setting up new EV production facilities from customs duty on a one-time basis. EV charging stations are also fully exempted from customs duties, encouraging infrastructure expansion. For hybrid vehicles, CKD parts for HEVs are subject to a 4% duty and for plug-in hybrid electric vehicles (PHEVs) a 3% duty, with eligibility restricted to manufacturers certified by the Engineering Development Board.
Frequently Asked Questions
What is the key objective of Pakistan’s EV import duty policy under the 2027 framework?
The policy aims to encourage electric and hybrid vehicle adoption while strengthening local manufacturing and assembly capabilities through concessional duties, targeted exemptions, and structured incentives. By reducing import costs for critical components and infrastructure, Pakistan seeks to accelerate its transition toward sustainable mobility while maintaining industrial development under EV Policy 2020 and AIDEP 2021-26 frameworks until 2027, ensuring balanced ecosystem growth across commercial and passenger vehicle segments.
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