The government has erased the commercial import of used cars up to five years old, subject to an additional task of 40%. The decision, made by the Tariff Policy Board (TPB) under Minister of Trade Jam Kamal Khan, will now be sent to the Economic Coordination Committee (ECC) for definitive approval.
Pakistan has long limited the import of used vehicles to protect the local car industry, one of the largest production sectors in the country. The new policy, however, reflects the urge of the government to expand the choice of consumers and at the same time to be in accordance with IMF -Benchmarks.
According to the approved framework, import will initially be limited to vehicles that are not older than five years to 30 June 2026, after which the age restriction will be completely lifted. Compliance with environmental and safety standards, as set out by the Ministry of Industry and Production, will also be mandatory.
The decision has taken strong objections from the automatic sector, which warns that liberalized import could harm local production and possibly attract research from global watchdogs such as the FATF. Stakeholders in the industry claim that the policy undermines domestic production, which is already under pressure from falling turnover and rising costs.
Main import policy Highlights
| Policy measure | Detail |
| Age limit of the vehicle | Up to 5 years (until June 30, 2026) |
| Additional duty | 40% ARD on import |
| Compliance | Mandatory environmental and safety standards |
| Supervision | Ministry of Industry and relevant authorities |
| Next step | ECC definitive approval in treatment |
In the coming weeks, the ECC will determine the policy, which may open the Pakistan market for more used cars, while the debate about the future of the local car industry will be intensified.
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