Islamabad, Pakistan — The Pakistan used car import policy has undergone a significant transformation. As part of its economic reforms with the International Monetary Fund (IMF), Pakistan will lift the long-standing ban on used vehicle imports starting July 1, 2025.
This reform aims to liberalize the automotive market, increase consumer choice, and reduce vehicle costs across the country.
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Key Changes in Pakistan Used Car Import Policy and Timeline
- Used vehicle tariffs will start at a 40% premium over new car tariffs in fiscal year 2025-26, decreasing by 10% annually to zero by 2030.
- Vehicles under five years old will be eligible for import, meeting required environmental and safety standards.
- The government will phase out additional customs duties and significantly reduce regulatory duties on vehicles.
- From fiscal year 2026-27, compliance with safety and environmental standards will replace the vehicle age limit.
- Pakistan commits to not introducing new regulatory duties on vehicle imports.
This updated used car import policy is designed to reduce Pakistan’s average vehicle tariff from 10.6% in FY2025 to under 6% by FY2030, promoting a competitive and consumer-friendly market.
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Impact of Pakistan Used Car Import Policy on Consumers and Industry
The new policy will:
- Lower vehicle prices, making cars more affordable for Pakistani consumers.
- Increase the variety and availability of vehicles in the market.
- Retain the Federal Board of Revenue (FBR) depreciation allowance of 1% per month on used vehicle imports, though revisions may be made in the next budget.
- Balance the interests of local automakers who have concerns about increased competition with consumer benefits.
Broader Economic Impact of Pakistan Used Car Import Policy
This policy change aligns with IMF-led reforms focusing on tax revenue enhancement, fiscal discipline, and reducing trade barriers. Simplifying import-export regulations and addressing non-tariff barriers will further ease trade. The government also plans tax relief measures for salaried individuals as part of the broader economic reforms.
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Bloom Insight
The lifting of the ban on used cars is a game-changer in Pakistan’s automotive landscape. This Pakistan used car import policy reform not only improves vehicle affordability and consumer choice but also highlights Pakistan’s commitment to sustainable economic growth under IMF guidance.
For the latest updates and in-depth analysis on this and other economic developments, visit Bloom Pakistan — your trusted source for business and economic news.
