Islamabad: (RightNow). The federal government has shared the final draft of the new five-year auto policy 2026-31 with the IMF. After consultations, this draft will be presented to the ECC and federal cabinet for approval. The policy is expected to reduce local car prices.

Sources indicate the policy includes incentives for promoting electric vehicles. Companies with good performance will receive incentives, while penalties will be imposed for poor performance. The government expects financial benefits of 1764 billion rupees from this policy.

Various incentives are proposed for the auto sector, including a phased reduction of customs duty on regular cars up to 80%. Proposals include exempting electric vehicles from federal excise duty, capital value tax, and withholding tax.

The loan limit for electric vehicles is set at 10 million rupees with a five-year term. Six principles are established for car manufacturers, making them responsible for price increases after booking.

It is noteworthy that the government expects a net profit of 288 billion rupees over five years from this policy, along with an additional 485 billion rupees from federal excise duty. Fuel import savings of over 1226 billion rupees are also anticipated.