Electric bike makers in Pakistan face a new cost shock. The federal government has refused the Engineering Development Board’s request for tax relief on imported parts. As a result, customs duty on electric bike parts that had been one percent may rise to between 30% and 35%.
The low duty had been part of the Auto Industry Development and Export plan for two-wheelers. That plan allowed 1% duty on battery motors, chargers, and converters to support local assembly and to cut fuel imports. The window of concessions was set under the policy and related SROs. A change now will push up input costs for assemblers and for small makers who build bikes locally.
Industry leaders say the move will raise retail prices and slow down planned local projects. Officials say some briefings on the scheme to the prime minister used the wrong numbers. The EDB has also been without a permanent board and CEO for over a year. That gap in leadership has weakened the body that shaped the EV plan and its follow-up.
Consumers and small businesses are likely to watch the budget and the policy notes closely. The matter will shape how fast Affordable Electric Bikes can spread across cities and towns.