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Don't Expect Every Car Price to Drop Overnight

For consumers, this may be the most important takeaway.

The government's statement confirms the direction of policy, but it does not establish a new retail price for any individual car.

The final impact will depend on:

When the new policy is formally notified.
How quickly ACD and RD are phased out.
The customs-duty schedule applied to each vehicle category.
Tax treatment of CKD components versus CBUs.
Sales tax, FED and any other applicable levies.
Exchange-rate movements.
Whether manufacturers pass lower costs through to buyers.

Until those details are formally issued, claims that a particular vehicle will become "Rs500,000 cheaper" or "Rs1 million cheaper" should be treated cautiously unless supported by an official revised price announcement.

What Should Car Buyers Do Now?

There is no strong reason to cancel an immediate vehicle requirement solely because of today's announcement.

If you are considering a purchase, track three things: the final policy notification, any subsequent FBR SROs, and revised official manufacturer price lists.

Those will tell buyers much more than headline duty percentages alone.

For imported used vehicles, the calculation is even more complicated because customs valuation, depreciation, applicable import rules and vehicle eligibility can materially affect the final landed cost.

Buying a used vehicle in Pakistan? A CarAdvisers 220-point pre-purchase inspection can help identify mechanical, body, electrical and diagnostic issues before you finalise the deal.

Explore More with CarAdvisers

Car Inspection — Get a 220 + points professional pre-purchase inspection before buying a used or new car.

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FAQs

Has Pakistan removed Additional Customs Duty on cars?

Not yet across the entire automotive sector. The government says the upcoming Auto Policy 2026–31 will remove ACD, while existing tariff notifications continue to govern current imports until new legal measures take effect.

Is Regulatory Duty on imported cars being abolished?

The government's stated direction is to remove RD under the new auto framework. Pakistan's National Tariff Policy and IMF programme commitments also envisage phasing out these additional tariff layers. The exact implementation schedule applicable to vehicles needs to be confirmed through the final policy and legal notifications.

Will imported cars become cheaper after the new auto policy?

Lower duties can reduce landed costs, but the final retail impact will depend on Customs Duty, taxes, exchange rates, freight, vehicle category and distributor pricing. A duty reduction should therefore not be treated as an automatic equivalent reduction in showroom price.

When will Pakistan's Auto Policy 2026–31 be implemented?

As of September 16, 2026, the government says the framework is almost complete and is working through legal aspects before formal announcement. Earlier reporting described the framework as having received in-principle approval, but final implementation details still require formalisation.

Does removal of ACD and RD mean imported cars will become duty-free?

No. ACD and RD are only parts of the overall tax and tariff structure. Customs Duty and other applicable taxes and levies may still apply.

Conclusion

Pakistan's Auto Policy 2026–31 could mark one of the biggest changes to the country's protected automotive market in years.

The government's confirmation that Additional Customs Duty and Regulatory Duty are intended to be removed fits the broader National Tariff Policy objective of reducing trade protection and simplifying Pakistan's tariff structure.

For consumers, however, the important question is not simply whether two duties disappear. It is how much the total tax burden falls and how much of that saving reaches the buyer.

Lower tariffs could increase competition between imported and locally assembled vehicles, put pressure on manufacturers to improve specifications and pricing, and make localisation and exports more important than tariff protection.

But today's announcement should not yet be presented as an across-the-board car price cut.

The next documents to watch are the final Auto Policy 2026–31, its implementation schedule, FBR notifications and manufacturers' revised price lists.

Those will show what Pakistan's new automotive tariff regime actually means for the price consumers pay.

Stay connected with Car Advisers Blogs for trusted reviews, market intelligence, and the future of mobility in Pakistan.

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