The Ministry of Finance has announced a significant policy shift by allowing the commercial import of used vehicles up to five years old until June 30, 2026. This decision, approved by the Economic Coordination Committee (ECC), is expected to reshape Pakistan’s automobile sector, providing buyers with more options while gradually easing the duty structure.
Regulatory Duty Structure on Imported Cars
As per the new policy, used cars up to five years old will face an additional 40% regulatory duty on top of regular customs duty until June 2026. However, the government has planned a phased reduction in this extra duty over the following years:
- 2026–27: 30%
- 2027–28: 20%
- 2028–29: 10%
- 2029–30: 0% (no extra regulatory duty)
While regular customs duty will remain in place, the gradual elimination of the regulatory duty is expected to make imported vehicles more affordable in the long run.
Environmental and Safety Standards
The ECC has also emphasized that all imported vehicles must meet environmental and safety regulations. This move ensures that the influx of used cars aligns with Pakistan’s commitment to road safety and environmental sustainability.
Impact on Pakistan’s Auto Sector
This policy could increase competition in the local market, offering consumers better prices and more choices. However, it may also put pressure on domestic manufacturers to innovate and improve product quality.
With the phased duty reduction, experts believe the policy will encourage healthy market dynamics while still safeguarding revenue collection until duties are completely removed in 2030. The new import policy for used cars in Pakistan is a game changer, opening the door to affordability, consumer choice, and market competition while ensuring safety and environmental compliance.
Disclaimer: The information provided in this article about the import of used cars in Pakistan is based on official announcements by the Ministry of Finance and the Economic Coordination Committee (ECC). Policies, duties, and regulations are subject to change without prior notice. Readers are advised to verify the latest rules and consult with customs or legal authorities before making any import decisions.
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