Pakistan has officially allowed the commercial import of used vehicles, introducing fresh regulations and duties aimed at balancing consumer demand, environmental standards, and protection of local industry.
The decision was finalized during the Economic Coordination Committee (ECC) meeting, chaired by Finance Minister Senator Muhammad Aurangzeb.
According to the Finance Ministry, amendments have been made to the Import Policy Order 2022, enabling the structured entry of used vehicles into Pakistan’s market.
This marks the first time the government has permitted commercial-scale import of used cars, a move that is expected to significantly impact both buyers and the local auto industry.
Rules for Used Vehicle Imports
Under the new policy, only cars not older than five years will be allowed for import until June 30, 2026.
After this date, the age restriction will be lifted, opening the market for a wider range of vehicles.
However, all imported cars must strictly comply with international safety and environmental standards, ensuring reduced emissions and safer road use in Pakistan.
This regulatory framework aims to offer consumers more choices in affordable transportation while maintaining global compliance benchmarks.
Industry experts believe the introduction of such rules will also improve the quality of used cars entering the country compared to earlier informal imports.
Regulatory Duty (RD) on Imported Vehicles
To safeguard the local auto sector, the ECC has imposed a 40% Regulatory Duty (RD) on imported used cars. This duty will remain effective until June 30, 2026.
From July 2026 onwards, the duty will be reduced gradually by 10 percentage points per year, eventually reaching zero by the fiscal year 2029-30, based on the recommendations of the Tariff Policy Board.
This phased reduction is designed to give Pakistan’s auto industry time to adjust while gradually easing the cost burden on car buyers in the coming years.
Broader Economic Implications
The ECC also approved an Rs. 800 million Technical Supplementary Grant for the Pakistan Virtual Asset Regulatory Authority (PVARA).
Senior officials from petroleum, food security, and power sectors attended the meeting, highlighting the government’s broader focus on regulatory reforms and fiscal management.
With these changes, Pakistan is attempting to strike a balance between consumer accessibility, industrial protection, and environmental responsibility.
The approval of commercial used car imports under strict regulations could reshape the country’s automotive landscape over the next decade.