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ISLAMABAD: The federal government is considering the import of 5-year-old used vehicles in Pakistan as part of a broader reform agenda influenced by the International Monetary Fund (IMF), aimed at liberalizing the country’s auto sector.
According to official sources, economic policymakers are evaluating a series of proposals from the IMF to open up the automotive market. These recommendations include eliminating regulatory duties, cutting tariffs on Completely Built-Up (CBU) units to under 10%, and gradually reducing all auto-related tariffs to single digits within five years.
One of the central policy changes being reviewed involves allowing the commercial import of vehicles—a move that would represent a major shift from current import regulations. Presently, Pakistan permits the import of used passenger cars up to three years old and SUVs up to five years old under specific schemes.
The new proposal would extend the age limit across all categories, enabling the import of 5-year-old used vehicles in Pakistan regardless of type. Government officials suggest this change could be announced in the upcoming federal budget to fulfill IMF benchmarks and secure further financial assistance.
While the plan could improve consumer access to more affordable imported cars, industry experts caution that relaxed import rules and tariff reductions might significantly raise the national import bill. There is also concern that local automobile manufacturers may face stiffer competition, potentially hurting domestic production and employment.
Despite these risks, the proposed reforms reflect Pakistan’s ongoing commitment to structural economic adjustments under IMF guidance, with the goal of creating a more competitive and open market environment.
