Thinking about importing a car to Pakistan in 2025? Whether it’s a brand-new vehicle, a used Japanese car, or an electric vehicle (EV), the updated Pakistan Car Import Policy 2025 outlines all key rules, duties, and tax structures.
Who Can Import Cars in Pakistan?
You can import a car under one of three government-authorized schemes:
1. Personal Baggage Scheme
- Must have stayed abroad for at least 180 days in the last 7 months
- One vehicle per calendar year is allowed
2. Transfer of Residence (ToR) Scheme
- Requires a minimum of 700 days abroad within the past 3 years
- Meant for overseas Pakistanis permanently relocating
3. Gift Scheme
- A vehicle can be gifted to immediate family members in Pakistan
- Donor must have been abroad for at least 180 days
Note: All import payments must be made in foreign exchange through authorized banking channels.
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Car Import Age Limit in Pakistan (2025)
| Vehicle Type | Maximum Allowed Age | Conditions |
|---|---|---|
| New Cars | Up to 12 months old | Mileage under 2,000 km |
| Used Cars | Up to 3 years (cars) or 5 years (SUVs/4x4s) | Must be within age at entry |
| Vintage Cars | Pre-1968 models only | Flat duty applies |
Pakistan Car Import Duty and Taxes 2025
Import Duties for New Cars (CBU)
| Engine Size | Import Duty Rate |
|---|---|
| Up to 1,300cc | 50% |
| 1,301cc – 1,800cc | 65% |
| Above 1,800cc | 75% |
Flat Duty on Used Cars (Grey Channel)
| Engine Capacity | Fixed Duty (USD) |
|---|---|
| 801cc – 1,000cc | 5,500 |
| 1,001cc – 1,300cc | 11,000 |
| 1,301cc – 1,500cc | 15,400 |
| Above 1,500cc | Higher flat rates apply |
Additional Taxes and Charges
- Sales Tax: 18%
- Federal Excise Duty (FED): Varies by engine size
- Withholding Tax: Based on filer status
- Provincial Cess: Around 1.1% to 1.85% depending on the region
Electric and Hybrid Car Import Policy 2025
Under the Electric Vehicle Policy 2020–2025 and Auto Industry Development Policy 2021–2026, Pakistan offers major incentives for EV imports.
Key Incentives
- Import Duty on EVs: 1%
- Sales Tax on Locally Assembled EVs: 1%
- Hybrid Car Parts: Duty reduced to 3–4%
- EV Kits and Chargers: Duty-free or near-zero duty
These changes make electric vehicles more affordable in Pakistan in 2025.
Tariff Reforms Effective from July 2025
In line with IMF commitments, Pakistan is reducing car import duties to make vehicles more accessible.
| Timeline | Targeted Average Tariff |
|---|---|
| July 2025 | 7.1% (from over 10%) |
| By 2030 | 5.6% |
Benefits of the Reforms
- Up to 75% reduction in customs and regulatory duties
- Removal of unnecessary duty layers
- Potential car price reductions between 15% to 50%, depending on vehicle type and source
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Digital Clearance System: Pakistan Single Window (PSW)
The Pakistan Single Window (PSW) system has digitized the vehicle import process:
- Faster customs clearance
- Paperless documentation
- Integrated with ports, banks, and FBR
- Time and cost-saving for importers
Summary of Pakistan Car Import Rules 2025
| Category | Details |
|---|---|
| Import Schemes | Personal Baggage, Transfer of Residence, Gift |
| Age Limit (Used Cars) | 3 years (cars), 5 years (SUVs/4x4s) |
| Age Limit (New Cars) | Max 1 year old, under 2,000 km |
| Import Duty (New Cars) | 50% to 75% depending on engine size |
| Flat Duty (Used Cars) | USD 5,500 to USD 15,400+ |
| EV Import Duty | 1% on CBU imports |
| Tax Reforms | Duty reductions from July 2025 onward |
| Clearance System | Fully digitized through PSW |
Conclusion
The Pakistan Car Import Policy 2025 introduces structured regulations and significant tariff reductions, especially for electric vehicles. With digital customs clearance and streamlined procedures, it’s now easier and more cost-effective to import both new and used vehicles.
Understanding these rules will help you save money and avoid legal issues whether you are an overseas Pakistani or a local buyer planning to import a vehicle in 2025. Stay tuned with Bloom Paksitan
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