Islamabad, May 20, 2025: In a major development ahead of Pakistan’s Budget 2025-26, car prices may see a noticeable decline as the International Monetary Fund (IMF) has urged the government to lift the ban on the commercial import of vehicles.
According to sources in the Finance Ministry, the IMF has directed Pakistan to finalize legislation by July to allow the import of used vehicles.
Under the proposed changes, cars up to five years old will be eligible for import — a significant shift from the 2022 Import Order that restricted vehicle imports to those no older than three years.
This move is seen as a direct requirement under the IMF’s staff-level agreement with Pakistan and must be approved by Parliament before the end of June.
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Officials believe this policy change could deal a major blow to the local auto manufacturing industry, particularly local parts manufacturers, who may face increased competition and financial strain.
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However, the change is expected to benefit consumers, providing them with access to more affordable vehicles in the market.
The IMF has emphasized that this legislation is mandatory for Pakistan and must be enacted before July, aligning with its broader budgetary targets.
