Used car imports in Pakistan approved under new regulations

ECC imposes 40% Regulatory Duty on used car imports on top of existing customs duties
An undated image. — Adobe Stock
An undated image. — Adobe Stock

In what appears to be drawing local automakers' ire, the Economic Coordination Committee (ECC) has allowed the commercial import of used cars under new rules.

The government's nod to used car imports in Pakistan was given during a virtual meeting led by Federal Finance Minister Senator Muhammad Aurangzeb, a move auto experts believe will enhance the automotive sector's access to imported cars.

The development, forming part of broader government reforms, has been introduced to boost competition in Pakistan's already-swamped auto market while ensuring that imported vehicles meet safety and environmental standards.

According to the new regulations cited by TechJuice, only vehicles less than five years old can be imported commercially until June 30, 2026, after which the age limit will be lifted.

How much duty is imposed on used car imports in Pakistan?

Initially, to manage the volume of imports, the ECC has imposed a 40% Regulatory Duty (RD) on these vehicles on top of existing customs duties. This duty will gradually decrease starting in 2026 and will be completely phased out by 2029-30.

These measures reflect on the government’s commitment to revamping the automotive sector while balancing economic needs.

By facilitating the import of used cars, the government seems to be in support of improving consumer choice and intensifying market competition in Pakistan.