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The government has cleared the commercial import of used cars up to five years old, subject to an additional 40% duty. The decision, taken by the Tariff Policy Board (TPB) under Commerce Minister Jam Kamal Khan, will now be sent to the Economic Coordination Committee (ECC) for final approval.
Pakistan has long restricted the import of used vehicles to protect its local automobile industry, which is one of the country’s largest manufacturing sectors. However, the new policy reflects the government’s push to expand consumer choice while aligning with IMF benchmarks.
According to the approved framework, imports will initially be limited to vehicles not older than five years until June 30, 2026, after which the age restriction will be lifted entirely. Compliance with environmental and safety standards, as outlined by the Ministry of Industries and Production, will also be mandatory.
The decision has drawn strong objections from the auto sector, which warns that liberalized imports could hurt local production and may attract scrutiny from global watchdogs such as the FATF. Industry stakeholders argue that the policy undermines domestic manufacturing, already facing pressure from declining sales and rising costs.
Key Import Policy Highlights
| Policy Measure | Detail |
| Vehicle age limit | Up to 5 years (till June 30, 2026) |
| Additional duty | 40% ARD on imports |
| Compliance | Mandatory environmental & safety standards |
| Oversight | Ministry of Industries & relevant authorities |
| Next step | ECC final approval pending |
The coming weeks will determine whether the ECC endorses the policy, potentially opening Pakistan’s market to more used cars while intensifying debate over the future of the local auto industry.
