Govt Announces Just 40% Duty on Imported Used Cars

Jawad

15 Sep 2025

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Govt Announces Just 40% Duty on Imported Used Cars

The Pakistan Used Car Import Policy 2025 has taken a major turn as the Tariff Policy Board (TPB), chaired by Minister for Commerce Jam Kamal Khan, has approved the commercial import of vehicles up to five years old. Under this new decision, importers will be allowed to bring in cars with an additional 40% duty used car import condition.

This policy shift marks a significant update in the Pakistan government car import rules, aiming to widen consumer choice while aligning with global financial commitments. However, the move has triggered concerns from local automakers, who fear that a surge in 5-year-old car import Pakistan could hurt domestic production and investment.

Key Features of the Import Policy

The new proposal under Pakistan car import policy update allows the commercial import of passenger vehicles under PCT 8703. Cars no older than five years can be imported until June 30, 2026, after which the age restriction will be lifted. All imports must comply with safety and environmental standards, as monitored by the Ministry of Industries and Production and relevant authorities.

Importers will benefit from low duty car imports Pakistan, but the government stresses that the additional 40% duty is necessary to maintain balance between foreign and local players. The policy will next be reviewed by the Economic Coordination Committee (ECC) for final approval.

Concerns from the Auto Industry

Pakistan’s auto sector has strongly opposed the decision, warning that the import of used cars in Pakistan may undermine domestic manufacturing. Industry representatives argue that liberal import policies could weaken one of the country’s largest engineering and industrial bases. They also highlighted that the used car trade is under scrutiny by international bodies like the Financial Action Task Force (FATF) due to risks of money laundering.

Government’s Perspective

Officials backing the decision emphasize that the move is part of meeting IMF benchmarks while offering consumers access to more affordable vehicles. By enabling affordable used cars import Pakistan, the government aims to relieve pressure on buyers struggling with rising car prices and limited options in the local market.

What Lies Ahead

The ECC’s final approval will determine the implementation timeline of the Pakistan used car import policy 2025. If cleared, the market will open up for 5-year-old car import Pakistan, providing new opportunities for commercial importers. However, the decision also sets the stage for tougher competition between local manufacturers and imported car dealers.

As the debate continues, stakeholders will weigh the benefits of consumer choice and international compliance against the risks posed to local industries. For now, this development stands as one of the biggest highlights in Pakistan car market news 2025.

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