Pakistan Budget for FY 2026-27

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Budget 2026-27: Federal excise duty introduced on imported vehicles​

Finance minister says existing concessions for electric motorcycles, rickshaws and buses will remain in place

Web Desk
June 12, 2026

Finance Minister Muhammad Aurangzeb on Friday said that the government had decided to impose federal excise duty (FED) on imported vehicles while presenting the 2026–27 Federal Budget in the National Assembly.

During his budget speech, Aurangzeb said that sports utility vehicles with engine capacities between 2,000cc and 3,000cc would now be subject to FED.

“Excise duty will also be increased on vehicles with engines above 3,000cc,” the minister said, adding that electric vehicles priced over Rs20 million would also be subject to FED.

He noted that the new auto policy was currently under review by a committee formed by Prime Minister Shehbaz Sharif.

The minister clarified that the existing concessions for electric motorcycles, rickshaws and buses would remain in place. For imported electric trucks, a 1% sales tax relief had been proposed.

 

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'Budget lacks export push, growth strategy'​

OICCI warns informal cash economy surges 33%; BMG terms budget 'neither good nor bad'

Our Correspondent
June 13, 2026

'Budget lacks export push, growth strategy'

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KARACHI: The Overseas Investors Chamber of Commerce and Industry (OICCI) has welcomed parts of the Federal Budget 2026-27 but raised serious concerns over the expanding informal economy and policy gaps, while other business bodies criticised the lack of a clear export-led growth strategy.

Presenting the budget in the National Assembly, Finance Minister Muhammad Aurangzeb announced total federal expenditure of Rs18,771 billion and set an economic growth target of 4%, describing the budget as anchored in "stabilisation, reform and growth".

OICCI acknowledged the budget as one "showing restraint, some structural ambition and meaningful forward movement" under fiscal pressure and International Monetary Fund (IMF) commitments. It noted that the Federal Board of Revenue's (FBR) collection of Rs13 trillion is a milestone worth acknowledging.

However, the chamber stated plainly that, "most of it was collected from those who were already paying" – organised businesses, formal sector companies and salaried taxpayers. Meanwhile, the informal cash economy has grown from Rs9 trillion last year to Rs12 trillion this year, a 33% surge in a single year.

 

[SoulSpokesman]

@RealNapster

Nappy bro,

With Muddijee building dams on Pakistani rivers, even grass will be hard to come by.

Regards