Pakistan EV import duty cut to 25%: CBU vs CKD math

Five percent matters less than the shape of the ladder, and that shape means the old rule of thumb is dead. CBU duty falls from 50% to 25%, CKD kits sit at 1%, and small EVs under USD 15,000 drop to 5%. The gazette is still pending, so quoting now is about locking allocation early.

The 2026–31 policy was cleared on 20 October, with the IMF demand to lift EV sales tax back to 18% rejected. The schedule reads 1% for BEVs, 6% for range-extenders, 9% for plug-in hybrids, petrol untouched. The instalment ceiling also rises to PKR 10 million, which decides whether cars leave the showroom.

On a USD 20,000 FOB car, duty at 25% saves USD 5,000 a unit, and sales tax at 1% instead of 18% saves another USD 3,400 on CIF. That is roughly USD 8,000 left with the importer, close to the whole margin on a compact EV. Above USD 75,000 declared, an extra 10% federal excise duty applies.

Above USD 75,000 an electric car is no longer merely expensive; 25% duty plus 10% FED pushes it out of mainstream channels. Below USD 15,000, the 5% rate opens the cheapest entry point this market has offered. Pakistan wants volume-priced EVs and knock-down assembly that hires locally, not flagship showroom cars.

Before the gazette appears, request three items: a proforma invoice stating FOB and CIF separately, a certificate of origin, and HS codes with a CKD packing list. The second decides whether the 1% parts rate applies; the third decides vehicle or kit at customs. Ask the factory for configuration sheets at both price lines.

What certifications are required to import used cars from China?
Requirements vary by destination (e.g. EAEU needs SBKTS/OTTC, GCC for the Middle East). EZ Auto handles compliant documents and certification per the destination customs, confirming clearance before shipment to avoid port hold-ups.

What recent policy changes affect Chinese vehicle exports?
EV subsidies are phasing out while export licensing and shipping capacity fluctuate. EZ Auto tracks destination tariffs and certification changes and updates them in the News section for procurement decisions.

Can an individual buy a car directly from China for export?
Possible, but with document and customs hurdles. Most buyers order through a licensed exporter like EZ Auto, which handles the contract, export declaration and destination paperwork; you only handle pickup and local registration.

What export documents are needed for used cars?
Core documents include the commercial invoice, packing list, export customs declaration, bill of lading and the destination's import clearance papers. EZ Auto prepares the full set before shipment to ensure smooth clearance abroad and avoid demurrage.

Do destination countries limit the age of imported vehicles?
New cars are mostly unrestricted; used cars often face an age cap (e.g. some Middle East and Africa markets require within 5-8 years). EZ Auto checks the destination's age rule before shipping and screens out non-compliant units to avoid rejection at port.

This article is published by EZ Auto. EZ Auto (Cheyixing Automobile Import & Export) specializes in exporting Chinese vehicles — new, used and parts — serving Latin America, Central Asia & CIS, Africa, the Middle East and the EU, with order-based sourcing, inspection with photo report, export documentation and ocean freight in one place.