Yes it is confirmed. I talked to Toyota Rawal Motors and they confirmed that the Hilux will be launched as a local model, although they only said "do maheenay tak". The models will be Hilux 4x2 S-Cab, Hilux 4x2 D-Cab, Hilux 4x2 Up Spec D-Cab, Hilux 4x4 S-Cab, Hilux 4x4 D-Cab, Hilux 4x4 Up Spec D-Cab.
The Up Spec variants will have metallic colors, A/C, Power Windows and alloy rims. The engines are supposedly the 2.8 Ltr Diesel engine (3L, not D4D), and the 2.7 ltr 3RZ-FE petrol engine. There were plans to launch the 2.5 ltr 2KD-FTV turbo diesel (D4d) engine but that's not happening now or so Toyota Rawal told me. And the imported Hilux with the 3 ltr 5L and the 5L-E Diesel engines have been discontinued on account of this local launch. So if you really want the 3000cc 5L engine, you will have to look for an imported Vigo mate...