If you’ve been waiting for the right time to go electric in Pakistan, the 2026-27 budget might just be your signal. The government has introduced a tiered duty structure for imported electric cars, electric bikes, SUVs, and pickup trucks brought in as fully built units (CBU) for personal use.
Here’s how it breaks down:
- Rs. 20 million or below 0% import duty
- Rs. 20M to Rs. 30M 30% duty
- Above Rs. 30 million 40% duty
Simply put: Affordable EVs get a free pass, while luxury ones pay more. It’s a clear push to make electric mobility mainstream without subsidising the wealthy.
Local Assembly Gets a Boost Too
Domestic EV manufacturing also gets breathing room. The 1% customs duty on EV-specific CKD components for electric four-wheelers has been extended till June 30, 2027 giving local assemblers more time to scale up without heavy import costs.
A 25% concessionary duty on imported electric four-wheelers (excluding those priced above $50,000) is also extended to mid of 2027. Manufacturers can even import up to 100 CBU units per variant at half that rate, subject to approval under EV Policy 2020.
Electric Bikes & Rickshaws Included
It’s not just cars. Electric motorcycles benefit from 1% duty tax on key components motors, batteries, controllers, and chargers when imported in CKD form for local assembly.
For everyday riders and small business owners, the government’s PAVE programme (Pakistan Accelerated Vehicle Electrification) will offer subsidised financing for electric motorcycles and rickshaws. This one could genuinely move the needle for middle-income buyers.
Buses, Trucks & Factory Setup
Electric buses (25+ seats) and electric trucks in CBU condition will attract just 1% sales tax. CKD kits for electric buses, trucks, and prime movers also continue at 1% customs duty till June 2027.
Want to set up an EV manufacturing facility? The government is offering 0% duty on plant and machinery for new or expanded EV production units, a one-time incentive that could attract serious investors.
Luxury EVs Still Pay
The budget isn’t all concessions. Expensive electric vehicles will face Federal Excise Duty, so don’t expect a luxury EV to slip through duty-free. The government is drawing a clear line between accessibility and indulgence.
