ECC Approves Rs 800m for PVARA, Allows Used Car Imports

The Economic Coordination Committee (ECC) of the Cabinet has approved two major policy decisions allocating Rs 800 million to the Pakistan Virtual Asset Regulatory Authority (PVARA) and permitting the commercial import of used vehicles under revised rules. The meeting, chaired virtually by Finance Minister Senator Muhammad Aurangzeb from New York, was held at the Finance Division on Thursday.

This development comes as part of broader government reforms to regulate digital assets while easing the automotive sector’s access to imported vehicles. Pakistan is working on setting up a structured framework for virtual assets, and the allocation of funds to PVARA marks a step forward in financial modernization. At the same time, the ECC’s decision on used vehicle imports is aimed at increasing competition in the market while ensuring compliance with safety and environmental standards.

According to the decision, only vehicles less than five years old can be imported commercially until June 30, 2026, after which the age restriction will be lifted. To discourage excessive imports in the short term, the ECC also imposed a 40% Regulatory Duty (RD) on such vehicles, in addition to existing customs duties, with a gradual reduction starting in 2026 and phasing out completely by 2029-30.

Key Decisions at a Glance

The meeting was also attended by key federal ministers, secretaries, and senior officials from concerned ministries. These measures reflect the government’s dual strategy advancing digital asset regulation while balancing economic needs in the automotive sector.