Pakistan is officially shifting gears in its automotive policy. In a move that’s sure to excite car enthusiasts and shake up the local market, the government has agreed with the International Monetary Fund (IMF) to fully lift the ban on the commercial import of used vehicles.
For years, auto lovers in Pakistan have been limited by restrictive import rules, forcing many to pay a premium for new vehicles or settle for limited used options. That’s about to change—big time.
What’s Changing?
By July 2025, Pakistan plans to pass legislation in Parliament that will allow commercial import of used vehicles up to five years old, provided they meet modern safety and emissions standards. That’s a jump from the current three-year limit and opens the doors to a much wider range of late-model vehicles.
Think about it: cleaner, safer, and more tech-loaded used cars—everything from JDM gems to German diesels—could soon be legally imported and available at local dealerships.
Why the Shift?
This isn’t just about cars—it’s part of a broader economic overhaul. Under pressure from the IMF to modernize its trade practices, Pakistan is aligning with global norms by eliminating outdated trade barriers. The goal? Create a more competitive market, drive down prices, and give consumers more options.
The IMF’s latest report spells it out clearly: Pakistan has committed to lifting all quantitative restrictions on used car imports, aiming to boost supply, lower costs, and break the stranglehold of the current limited-choice ecosystem.
What It Means for Enthusiasts
For car fans, this is nothing short of revolutionary. With the five-year age window and relaxed commercial import rules, we could soon see an influx of highly desirable models on Pakistani roads—think turbocharged hatchbacks, hybrid sedans, off-road beasts, and even performance coupes that were previously out of reach.
Whether you’re a tuner, collector, or just someone who appreciates a well-engineered machine, the import landscape is about to open up like never before.
Bigger Picture: Reforming the Industry
This move is part of a broader overhaul of Pakistan’s industrial and trade strategy. The new National Tariff Policy (FY25–30) is set to slash regulatory duties and do away with preferential treatment that has long protected inefficient local players. Combine that with the upcoming Automobile Policy (FY26–31)—currently in consultation—and it’s clear the country is aiming for a more open, competitive, and consumer-friendly auto market.
The IMF is also pushing for reform in special economic zones like SEZs, EPZs, and STZs, urging Pakistan to phase out ineffective incentives that don’t deliver meaningful industrial growth.
The Road Ahead
With this policy change, Pakistan is stepping on the gas toward a more dynamic and accessible auto market. For enthusiasts, it means more choices, more innovation, and maybe even a little more horsepower in your garage.
So whether you’re dreaming of importing that pristine Toyota Crown, a Mazda RX-8, or a plug-in hybrid SUV, the road just got a lot clearer. Buckle up—Pakistan’s auto scene is about to shift into overdrive.