Business Desk 
Sep 16, 2025
The government of Pakistan has approved the import of used cars up to five years old subject to a 40% duty, a move criticised by the country's local carmaking sector.
The decision was made by the Tariff Policy Board (TPB) under Commerce Minister Jam Kamal Khan and will be forwarded to the Economic Coordination Committee (ECC) for final approval.
The greenlight comes in contradiction with Pakistan's history of restricting the import of used vehicles to protect its local automobile industry, which makes of for a significant share in the manufacturing sector.
Nevertheless, the new policy is likely to widen consumer choice and align with International Monetary Fund (IMF) demands, TechJuice reported.
As part of the approved framework, import of used cars in Pakistan will initially be limited to vehicles no older than five years until June 30, 2026, after which the age restriction will be lifted.
Buyers need to be very cautious about adhering to desk the environmental and safety standards set by the Ministry of Industries and Production.
The government's decision to allow used car imports has met with severe opposition from the auto sector, which warns that liberalised imports could negatively affect local production and draw scrutiny from global watchdogs like the Financial Action Task Force (FATF).
Similarly, stakeholders in the auto sector argue that the policy undermines domestic manufacturing, which is already struggling with low sales and rising costs.
