Business Desk 
Sep 15, 2025
The Tariff Policy Board has authorised the importation of used cars that are five years old, subject to an additional 40% duty under the leadership of Commerce Minister Jam Kamal Khan.
This action is in accordance with Pakistan's IMF obligations, which call for the removal of import restrictions on used cars starting in 2025–2026.
Toyota, Honda, Suzuki, and Hyundai are among the local automakers who are vehemently against the plan, claiming it could destroy the industry, which employs 1.5 million people and has invested $5 billion.
According to Toyota's Ali Asghar Jamali, "No country with domestic car manufacturing allows unrestricted used car imports."
He also stated that tariff cuts and the importation of used cars could harm the local industry and be in opposition to the "Made in Pakistan" agenda.
Leaders of the industry are worried about the used car market's susceptibility to FATF scrutiny for potential money laundering and terrorism financing issues.
They advocate implementing regulatory frameworks with stringent certification and inspection procedures, similar to those in Australia and New Zealand.
Automakers call for safeguards, such as a ban on the importation of used cars and tax adjustments to deter environmentally damaging automobiles.
The government must weigh possible risks to the domestic industry against economic benefits. The age restriction on imported used cars will be lifted by July 2026, subject to environmental and safety regulations.
As the proposal is being considered by the government, the future of the industry is at stake.
