World

VIEWPOINT: Auto policy’s tax paradox

Pakistan’s new auto policy was meant to take effect on July 1. It is yet to be finalised. Meanwhile, the automotive industry continues pricing vehicles, opening letters of credit, and signing dealer agreements in the dark — unaware of the tax burden those cars will carry next year. The latest bottleneck arose during the International Monetary Fund’s fourth review of the Extended Fund Facility. In late September, the Ministry of Industries and Production presented its draft Auto Policy 2026-31 to