Sales of hybrid and plug-in hybrid vehicles across Pakistan have come to a near standstill after the sales tax on these vehicles rose from 8.5 percent to 25 percent, following the expiry of the Auto Industry Development and Export Policy 2021-26 on June 30. The successor framework, the Auto Policy 2026-31, has yet to be notified, leaving buyers and manufacturers without clarity on future pricing. As a result, several vehicle assemblers have suspended invoicing and deliveries of hybrid models altogether. A senior industry executive said multiple assemblers had halted invoicing and deliveries of hybrid vehicles as the tax uncertainty persists. A cabinet summary proposing a reduction in the sales tax rate to 18 percent is reportedly under consideration.