Business Desk 
May 15, 2025
As Pakistan's federal government is gearing up to announce the annual budget for 2025-26 on June 2, significant changes are reportedly on the cards for the country’s automobile import policy.
In a bid to facilitate consumers, the government is considering allowing the import of 5-year-old used vehicles to align with auto sector reforms demanded by the International Monetary Fund (IMF).
Other notable proposals include the reduction of CBU tariffs to below 10% and cutting overall auto duties to single digits over the next five years.
The government is also reviewing proposals to slash import duties by 5% to 30% for vehicles up to 1801cc, including smaller cars with engine sizes up to 850cc. The current rate of these duties is between 50% and 100% aside from the actual vehicle price, depending on engine size, according to sources cited by Samaa.
The revision comes on the heels of consistent pressure from the IMF, which has urged Pakistan to lower import-related taxes to enhance transparency and competition in the auto sector.
Federal Board of Revenue (FBR) officials suggested that the proposed reductions would mainly benefit buyers of new vehicles, while the introduction of used car imports is being brought to widen buying options for consumers.
