Will vehicle prices drop in FY2025-26 budget?

Automobile expert Suneel Sarfaraz Munj has dismissed speculation that vehicle prices will decrease in the upcoming federal budget for FY2025-26.

Speaking on ARY News’ morning show Bakhabar Savera, Suneel Sarfaraz Munj stated that such expectations surface every year ahead of the budget but rarely materialize.

He warned that the proposed imposition of a carbon tax and an increase in the petroleum levy would disproportionately burden the general public. “These measures will haunt the everyday consumer,” he said.

Commenting on possible regulatory duty reductions, Munj noted that any such move would primarily benefit luxury vehicle buyers and not impact the prices of locally manufactured cars.

“The average Pakistani will see no relief unless the government cuts taxes on local vehicles,” he asserted.

Munj also cautioned against easing import restrictions, arguing that this is not the right time to relax the ban on imported vehicles. Instead, he suggested that the government should focus on supporting the local auto industry by lowering the tax burden on domestic production.

Earlier, the International Monetary Fund (IMF) urged Pakistan to gradually phase out federal funding for provincial development projects under the Public Sector Development Programme (PSDP).

According to sources, the IMF made this demand during virtual discussions with provincial governments, focusing on expenditure plans for the 2025-26 fiscal budget, with provinces actively participating in these sessions.

The IMF proposed that provinces eliminate their dependence on federal funds by independently raising resources, including enforcing an income tax on agricultural earnings exceeding Rs600,000 annually starting July 1, 2025, without exemptions.