The government of Pakistan has officially allowed the commercial import of used cars in Pakistan for the first time, effective from September 2025. This move expected to impact the used car prices in Pakistan as commercial import restrictions lifted for five-year-old vehicles.
Federal Finance Minister Muhammad Aurangzeb confirmed during a Senate Standing Committee on Finance meeting, chaired by Senator Saleem Mandviwalla, that the used car commercial import policy in Pakistan 2025 allow vehicles up to five years old to imported on a commercial basis. These vehicles will carry a 40% import duty.
Previously, the import of used cars in Pakistan restricted to personal schemes such as the Transfer of Residence (TR), Gift Scheme, and Baggage Scheme. Under the new policy, only individuals who have stayed abroad for 700 days will be eligible to bring vehicles under the Baggage Scheme.
The policy includes a phased reduction in import duty on used vehicles:
- From July 1, 2026: Duty reduced to 30%
- From July 1, 2027: Duty reduced to 20%
- From July 1, 2028: Duty reduced to 10%
- From July 1, 2029: Duty reduced to 0%
From July 1, 2026, used cars older than five years also allowed for commercial import.
The All Pakistan Motor Dealers Association has stated that this change will eliminate dependency on personal import schemes and reduce unofficial payments often made during the import process. Dealers believe this step will make used Japanese cars in Pakistan more accessible and may lower overall car prices in Pakistan 2025.
Chairman H.M. Shehzad said the decision aligns with recommendations by the WTO and IMF, which called for trade-based regulation of the used car sector. However, the final duty structure is yet to be officially notified.
The updated used car import policy Pakistan 2025 expected to affect the automobile market in Pakistan, creating a shift in availability and pricing for imported vehicles.
