Business Desk 
Jun 25, 2025
The government has decided not to roll back existing taxes on imported cars, confirming that stricter rules are coming for used vehicle imports.
This was shared during a meeting in Islamabad between Special Assistant to the Prime Minister (SAPM) on Industries and Production Haroon Akhtar Khan and members of the Car Dealers and Importers Association.
The SAPM stated that there are no intentions to provide tax relief for imported vehicles, but that the government is working on a system of mandatory registration and certification for used cars imported into Pakistan.
The conversation also explored the imminent Auto Policy 2026, customs duties, and issues related to the import and export of vehicles. Haroon Akhtar Khan articulated that the government considers auto dealers as integral players in developing the new policy.
In addition, he noted that Prime Minister Shehbaz Sharif favours an open and competitive structure for car imports into the country.
One emphasis was the movement toward electric vehicles (EVs). Khan shared that the government has already initiated the Electric Vehicle Policy for 2025-2030, which intends to shift 2.2 million cars to electric by 2030. "EVs are environmentally friendly, cheaper, and will reduce smog," he said.
In a separate engagement, Commerce Coordinator Rana Ihsaan Afzal Khan met with the All-Pakistan Car Dealers and Importers Association (APCDIA). The group expressed their approval of the government's plans to allow the importation of commercial vehicles and noted that sound policy decisions result from proper consultation.
Afzal Khan promised that the Ministry of Commerce will incorporate their suggestions in the next update to the Import Policy Order, anticipated to occur after September 2025.
