Talks between Pakistan and the IMF on the draft Pakistan Auto Policy 2026-31 have ended without agreement. The IMF has sought further information, and the draft may be revised before anything is finalised.
For anyone wondering whether to delay a purchase until duties change, the honest position is below.
| Policy status | Draft |
| IMF talks | Inconclusive |
| Duty and tax measures | Proposed only |
| EV incentives | Proposed only |
| Final approval | Not granted |
Nothing in the draft is in force. None of it is law until notified.
What Happened in the Talks
The discussions did not produce agreement, and the IMF asked for more information and data on the draft.
That is a request for detail, not a rejection and it is a normal stage in this kind of negotiation. But it does mean the timeline has moved, and the draft may change before it reaches the Economic Coordination Committee and the federal cabinet.
Why the IMF Is Involved at All
Because auto-sector taxation sits inside Pakistan's wider commitments. The IMF's April 2026 country report documents commitments around reducing preferential treatment in the auto sector and phasing out certain additional and special duties over the July 2026 to June 2030 period.
So the tension is structural rather than personal: an auto policy that offers generous protection or concessions to local assembly has to be squared against commitments to reduce exactly that. Background is on IMF Pakistan and the Finance Division.
What Is Proposed for EVs
The draft includes EV measures, among them a 1% sales tax treatment and changes to EV financing terms. Specific figures on financing tenure and limits are not settled.
All of this is proposed, not available. If you are planning an EV purchase around an incentive you have read about, wait for the notification rather than the news report — our guides to electric vehicles in Pakistan, buying an EV in Pakistan and EV charging stations in Pakistan cover what is true today.
Will Car Duties Fall?
The direction of travel in the IMF commitments points toward lower protection over time. The draft policy contains proposed tariff and duty measures. Neither of those is a reduction you can act on today.
No percentages are given here, deliberately the figures circulating are draft positions that may not survive revision. Meanwhile the rules that are in force have already tightened, as our coverage of the new import and transfer rules for imported cars and the new safety rules for used car imports shows.
Should You Delay a Purchase?
This is the question most readers actually have, so here is a straight answer: nobody can tell you when this policy will be finalised, or in what form.
Waiting indefinitely for a draft policy has its own cost prices, duties and the rupee all move in the meantime, and not always in your favour. If a car makes sense for you now, decide on today's numbers. If you can wait comfortably, waiting costs you nothing. What does not work is planning around a specific reduction that has not been approved.
What It Means for the Industry
Uncertainty is its own problem. Assemblers, importers and parts manufacturers all plan investment around the tariff and localisation framework, and an unresolved policy delays those decisions. That matters more than it sounds for a sector currently absorbing a wave of new entrants — see our coverage of new cars in Pakistan 2026.
Final Thoughts
Pakistan Auto Policy 2026-31 remains a draft. The IMF talks were inconclusive, more data has been sought, and the document may be revised before it goes to the cabinet. Every duty change and EV incentive being discussed is a proposal treat it as such until an official notification says otherwise, and be wary of anyone telling you exactly what the final policy will contain.
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