LAHORE: The lapse of the auto policy has left hybrid and plug-in hybrid vehicle sales largely frozen.

The Auto Industry Development and Export Policy 2021-26 expired on June 30, reverting hybrid electric vehicles (HEVs) and plug-in hybrids (PHEVs) from a 8.5pc sales tax to the 25pc rate. The Auto Policy 2026-31 has not been notified.

Sources claim the delay stemmed from objections by local carmakers on an early draft aimed at fast-tracking electric vehicle adoption.

“Multiple assemblers have halted invoicing and deliveries of hybrid models,” a senior industry executive told this reporter.

A cabinet summary is reportedly under consideration to reduce sales tax rate to 18pc. Until its approval, the 25pc rate remains in force.

“Every week without clarity carries a revenue cost: vehicles that would otherwise be sold and taxed are instead sitting unsold and buyers remain in limbo,” another car company official said.

Published in Dawn, August 5th, 2026