ISLAMABAD: Pakistan has intensified efforts to reshape its future road transport landscape by pushing for a sharply reduced 1 per cent tax on electric vehicles, as discussions with the International Monetary Fund continue over the country’s upcoming auto and mobility policy framework.

The proposal was presented during detailed negotiations between the visiting IMF mission and officials from the Ministry of Industries, who stressed that the future of Pakistan’s roads depends on affordable access to electric mobility. The plan is aimed at accelerating the shift from fuel based transport to cleaner and more efficient road vehicles.

Officials highlighted that the proposed tax structure would apply across a wide spectrum of road transport vehicles, including electric buses, trucks, passenger cars, motorcycles, rickshaws, and agricultural transport units. The government argued that such measures are critical for reducing congestion related emissions and modernising national highways and urban road networks.

The IMF was also briefed on Pakistan’s broader National Tariff Policy, under which the weighted average tariff in the auto and road transport sector is projected to fall below 6 per cent by 2030. Authorities said this long term reform is designed to improve logistics efficiency and reduce transportation costs across the country.

In parallel discussions, officials defended the need for uniform taxation across the electric vehicle supply chain, warning that uneven tax structures could disrupt domestic assembly and slow down the adoption of cleaner vehicles on Pakistan’s roads. The proposal is positioned as a way to ensure stable growth in the road transport ecosystem.

The government also reaffirmed its commitment to updating regulatory frameworks for road safety and environmental compliance through new legislation currently under parliamentary review. Officials said these reforms, combined with EV incentives, are intended to redefine the future of mobility on Pakistan’s roads over the coming decade.