Islamabad, September 24, 2025 – In a significant policy shift, Pakistan has formally allowed the commercial import of used vehicles, while simultaneously introducing stricter regulatory measures and additional duties to ensure compliance with international standards.
The decision was taken during the Economic Coordination Committee (ECC) meeting of the Cabinet, chaired virtually by Finance Minister Senator Muhammad Aurangzeb. According to a statement from the finance ministry, the ECC approved amendments to the Import Policy Order, 2022, enabling the regulated import of used vehicles for the first time on a commercial scale.
Under the new rules, only vehicles not older than five years will be permitted for import until June 30, 2026. After this period, the age restriction will be lifted, opening the door for broader import options. However, all imported units must meet strict environmental and safety benchmarks, aligning with global standards to reduce emissions and ensure road safety.
To safeguard local industry and maintain fiscal discipline, the ECC also imposed an additional 40 percent Regulatory Duty (RD) on imported vehicles. This enhanced duty will apply until June 30, 2026. Thereafter, it will be reduced gradually by 10 percentage points annually, reaching zero by the fiscal year 2029-30, following recommendations of the Tariff Policy Board.
In addition, the ECC approved a Rs 800 million Technical Supplementary Grant for the Pakistan Virtual Asset Regulatory Authority (PVARA). The meeting was also attended by ministers and senior officials from petroleum, food security, and power sectors.
This decision reflects Pakistan’s attempt to balance consumer demand for affordable transport with environmental responsibility and revenue management.